Bitcoin mining firm Compute North has filed for Chapter 11 bankruptcy amid growing pressure on the firm due to the effects of crypto winter and rising energy costs. The firm’s CEO, Dave Perrill, has also stepped down but will remain on the board.
The company submitted a Chapter 11 bankruptcy filing in the United States Bankruptcy Court for the Southern District of Texas on Thursday, which is now pending before Judge David Jones.
Under a Chapter 11 filing, the firm is still able to keep its operations going as it works out a plan to repay creditors. The filing reportedly outlines that Compute North owes around $500 million to 200 creditors, while its assets are said to be worth between $100 million and $500 million.
Compute North offers large scale crypto mining hosting services and facilities, hardware and a BTC mining pool. It is one of the largest data centre providers in the U.S. and has big-name partners in the BTC mining sector, such as Compass Mining and Marathon Digital.
Both companies have come out with statements via Twitter, noting that with the information they have at this stage, their business operations will continue as normal.
Compute North adds to a long list of crypto firms that have either fallen victim to crypto winter or, in some cases, helped create it including Voyager Digital, Three Arrows Capital, Celsius Network and BlockFi, to name a few.
