- CEO steps down
- The company had closed $385 million in equity and debt this Feb
- Compute North might be a victim of crypto winter
US based cryptocurrency mining company Compute North has filed for bankruptcy. CEO Dave Perril quit as CEO last month, but continues to serve as board member. Drake Harvey took over as President; he was serving as Chief Operating Officer or COO before.
Crypto prices have remained low after falling sharply since November last year. Big Fed rate hikes have added to the volatility of BTC prices. Central bank’s rate-hikes may keep investors away from risky assets like crypto.
Last year, Marathon Digital Holdings, which runs bitcoin mining operations, partnered with Compute North for its renewable energy centers. Compass Mining has entered into a similar partnership with the company. Marathon has stated on twitter that the bankruptcy filing will not affect the partnership.
Several other mining companies have inked partnerships with the crypto mining company. These include Bit Digital, The9 which is Chinese, Sphere 3D Atlas Mining and Bitnile.
Compute North was founded in 2017, pioneering the TIER technology. Headquartered in Eden Prairie, Minnesota, the IT company has data centers in the US and overseas. In the US, two centers are in Texas and 1 each in Nebraska and South Dakota.
According to its website, ‘the company provides efficient, highly scalable infrastructure for clients in the blockchain, cryptocurrency mining, and the distributed computing space.’
In January 2021, the company bagged $25 million in debt capital from Post Road Group, a US based investment firm focussing on technological ventures. In February 2021, it bagged $385 million in ‘Strategic Funding for TIER 0 Computing Infrastructure’ which includes $85 million in series C equity funding and $300 million from Generate for the new projects. Last month, Compute North ranked 96 on the Inc. 5000 Annual list, which tracks the fastest growing private companies in the United States.
Source: https://www.thecoinrepublic.com/2022/09/23/compute-north-one-of-the-largest-crypto-mining-firms-files-for-bankruptcy/