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    QONEQT in Crypto News

    23-Sep-2022 10:46 AM


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    Mining BTC Company Compute North files for bankruptcy

    Bitcoin (BTC) mining company Compute North has filed for the 11th capital despite increasing pressure on the company from the effects of the crypto crisis and the rise of energy costs. The company's CEO, Dave Perrill, has also resigned but will remain on the board. The company on Thursday filed for Chapter 11 in the United States Bankruptcy Court for the Southern District of Texas, which is currently pending before Judge David Jones.

    Under Article 11 filing, the business can still continue to operate while developing a plan to repay creditors. It was reported that the filing showed that Compute North owes about $500 million to 200 creditors, while its assets are said to be worth between $100 million and $500 million.

    Compute North offers great services and hosting companies for crypto mining, hardware and BTC pools. It is one of the largest data center providers in the United States and has well-known BTC mining partners such as Compass Mining and Marathon Digital.

    The two companies released a statement via Twitter, noting that from the information they have at this time, business operations will continue as usual. "Computer North staff advised us today that the filing is not expected to disrupt business operations. We are continuing to monitor the situation and will provide further updates as they become available," Compass said. Mining. The bearish performance of BTC in 2022 has had a big impact on the mining sector this year, and in the case of Texas, the rise in power consumption and several power outages during the extreme heat wave have not helped.

    Bloomberg Business Report reporter David Pan pointed out on Twitter that Compute North could be affected by costly delays at a large mining facility in Texas that could not make money for months. "Declare the large 280MW North plant in Texas should have been operational in April, but could not due to pending approvals. From then until the end of this year, when he was finally able to upgrade the machines, The price of Bitcoin went through several downward trends, opportunities to find money dried up, and lenders decreased,” he wrote. Compute North joins a long list of crypto companies that have either joined the crypto industry or, in some cases, helped create it, including Voyager Digital, Three Arrows Capital, Celsius Network and BlockFi, to name a few.
    Source: Cointelegraph
    #BTC