Crypto-Mining Data Center Compute North Files for Bankruptcy https://www.coindesk.com/business/2...ompute-north-files-for-bankruptcy-protection/ Compute North, one of the largest operators of crypto-mining data centers, filed for bankruptcy and revealed that its CEO stepped down as the rout in cryptocurrency prices weighs on the industry. The company filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas, according to a filing. Compute North in February announced a capital raise of $385 million, consisting of an $85 million Series C equity round and $300 million in debt financing. But it fell into bankruptcy as miners struggle to survive amid slumping bitcoin (BTC) prices, rising power costs and record difficulty in mining bitcoin. The filing is likely to have negative implications for the industry. Compute North is one of the largest data center providers for miners, and has multiple deals with other larger mining companies. CEO Dave Perrill stepped down earlier this month but will continue to serve on the board, the spokesperson added. Drake Harvey, who has been chief operating officer for the last year, has taken the role of president at Compute North, the spokesperson said. "The Company has initiated voluntary Chapter 11 proceedings to provide the company with the opportunity to stabilize its business and implement a comprehensive restructuring process that will enable us to continue servicing our customers and partners and make the necessary investments to achieve our strategic objectives," a spokesperson told CoinDesk in an emailed statement. CEO Dave Perrill stepped down earlier this month but will continue to serve on the board, the spokesperson added. Drake Harvey, who has been chief operating officer for the last year, has taken the role of president at Compute North, the spokesperson said. Compute North has four facilities in the U.S. – two in Texas and one in both South Dakota and Nebraska, according to its website. Some of the company's partners include Marathon Digital (MARA), where Compute North has brought online 40 megawatts (MW) of a 280MW wind-powered facility at its Upton County in West Texas. Bitcoin mining hosting and brokerage services firm Compass Mining also said recently that it will work with Compute North on a 75MW hosting partnership for its Granbury, Texas, data center. Compass said in a tweet that it's reviewing the bankruptcy petitions and Compute North has informed the company that the filing shouldn't disrupt mining operations. Marathon also tweeted that the bankruptcy protection filings won't affect its current mining operations and its in communication with Compute North. Meanwhile, crypto miner Hive Blockchain (HIVE) also entered into a deal with Compute North on March 7, for 100MW worth of mining capacity. Shares of Marathon were down slightly in post-market trading on Thursday, while Hive remained unchanged. Additional deals that Compute North signed included Singapore-based Atlas Mining, Chinese Crypto Miner The9, bitcoin miner BitNile Holdings (NILE), Bit Digital (BTBT) and Sphere 3D (ANY). Shares of BitNile was down about 1% in after-hours trading, while Bit Digital rose slightly. On July 14, Celsius Network's mining unit, which said in March it planned to go public, also filed for Chapter 11 bankruptcy protection, along with its parent company, in the U.S. Bankruptcy Court for the Southern District of New York. Meanwhile, Poolin Wallet, the wallet service of one of the largest bitcoin (BTC) mining pools, has announced on Sept. 13 it will issue IOU (I Owe You) tokens to affected customers after it froze withdrawals prior week.
Really dude? Just because a miner in Texas has stopped mining you think the whole industry is done? This thread is comical
GWB has a tendency to make up BS headlines based on zero content to back it up. Even though I somewhat agree w/the premise.
Tell us how the Ethereum Merge model which uses the proof-of-work system which will cut energy consumption by a massive 99.95% and is being proposed for other crypto currencies will support the mining industry. Between the falling crypto prices, increased regulation, and shifts in the industry -- there is going to be a die off --- in the long term leaving a few stronger players standing who also make decisions to re-entrench into other areas besides direct mining,
This day was bound to happen, if it hasn't already happened yet. Bitcoin is like a dinosaur coin, the most reputable on the market with the slowest performance and low utility. (A store of value) I think Ether will take Bitcoins position as the leading crypto. Mass utility, reliable, faster, and with all these global warming assumptions from Bitcoin mining (that everyone knows is bullshit,) Ethereum will perform better in that field as well. I can see Ethereum going at least 50x in the future the only problem is it has a higher market cap than Bitcoin. We will see
Yet -- what you are describing marks the demise to crypto miners. Keep in mind as noted in the article Compute North is one of the largest operators of crypto-mining data centers. This is not just some small operator.
Well mining can still be profitable for Bitcoin and alts if powered from natural sources. Bitcoin isn't going to all of the sudden die off, once the market recovers and it becomes profitable to mine Bitcoin the miners will come back out and turn their machines back on. This has happened in the past. It becomes unprofitable to mine because of the low value of a coin and the high power it costs to run the mining rigs. The mining done from natural powered sources will continue to mine no matter what the market does
This is pretty funny. They skipped the IPO and the fucking up retail investors' money part. In 5 months they went from "we gonna IPO and Moon" to "we are going bankrupt..."