The Latest Casualty of the Crypto Winters
The latest casualty of the Crypto Winters is data center firm Compute North, which has lost between $100 million and $500 million in assets. The company had tried to secure alternative funding through Generate Capital and other prospective investors, but a combination of factors pushed the company into bankruptcy. Energy costs, supply-chain disruptions, and a decline in bitcoin prices slashed the firm’s liquidity.
Compute North files for Chapter 11 bankruptcy
Compute North, the largest crypto mining data center in the world, has filed for voluntary Chapter 11 bankruptcy. The company had a presence in Texas, North Carolina, and Nebraska, and catered to the blockchain, cryptocurrency, and distributed computing industries. The company’s chief executive officer, Dave Perrill, has resigned from his position. The company’s COO, Drake Harvey, has taken his place as president.
Compute North is one of the largest operators of crypto-mining data centers in the world, with four data centers in the U.S. Its problems have been blamed on the cryptocurrency market’s recent slump and rising energy costs. Its founder and CEO, David Perrill, has stepped down but will remain on the board of directors.
Company’s assets worth between $100 million and $500 million
According to a bankruptcy filing, Compute North, a Texas-based data center for cryptocurrency miners and blockchain companies, owes around $500 million to approximately 200 creditors. The company is expected to continue operating while repaying these debts, but will have little cash left over after it pays administrative expenses.
The company is one of the largest operators of data centers for cryptocurrency mining. But the extended crypto winter is having an adverse effect on its daily operations, which have led to a bankruptcy filing. Two cryptocurrency mining companies have filed for Chapter 11 bankruptcy this summer. One of them is Compute North Holdings Inc., which is worth an estimated $100 million to $500 million. Despite its inability to pay off its debts, the company is continuing to operate in hopes that it can become profitable again.
Impact of bitcoin price on company’s liquidity
Crypto mining data center firm Compute North is facing a tough time. The company has filed for voluntary bankruptcy in the U.S., owing about $500 million to creditors. Although Compute North has enough cash on hand to survive bankruptcy, it will take some time to stabilize operations and come up with a strategic restructuring plan.
To make the estimate, the company used information from Bloomberg Finance L.P., Cambridge Centre of Alternative Finance, Chainalysis, Kaiko, Similarweb, and the International Monetary Fund. For panels two and four, the sample is comprised of 10 countries. For panels three and four, the data is in local currency, and the sample of countries is comprised of ten countries. For panel five, the sample uses a parallel FX-rate estimate for Argentina and Nigeria. The researchers also used hashrate, which measures the computing power used for crypto min
