The Digital Currency Group company Foundry is focused on crypto asset mining and staking. Recently, it made an agreement to purchase two turnkey mining facilities from Compute North. Foundry purchased these two facilities with a combined power capacity of 17 megawatts (MW), and there is a possibility that Foundry will acquire a third facility with a capacity of 300 MW that is under development in Granbury, Texas.
Foundry provides digital asset staking and advisory services to institutions such as exchanges, wallets, custodians, hedge funds, banks, and venture capital firms. Decentralization is enabled by the Foundry’s staking infrastructure facility, as the Foundry began working on Proof-of-Stake (PoS) networks to make them more accessible to users.
The CEO of Foundry, Mike Colyer, stated that “It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles.”
The largest US-based computing infrastructure company, Compute North, operates four mining centers: two are in Texas, one in McCamey with 280 MW capacity and another one in Big Spring; one in Kearney, Nebraska, with 100 MW capacity; and the final one in North Sioux City, South Dakota. As per the statement, Foundry is going to buy sites located in North Sioux City and Big Spring with a total operational capacity of 6 MW and 11 MW, respectively.
“Compute North has been our longtime partner, and we are happy to have the opportunity to continue building upon the foundation they have laid over many years while growing the North American mining system,” Mike Colyer further added.
Compute North agreed to complete the operation of the entity facility in Minden. Compute North owns a fleet of mining machines, as well as proprietary cloud-based management and monitoring software for large data centers.
Recently, Compute North filed for Chapter 11 bankruptcy because it owed nearly $500 million (USD) to 200 customers. Due to the downfall of Compute North in September, the entity started selling its assets to different companies. At the start of 2022, Compute North had raised its funds to $385 million (USD), with $300 million (USD) in debt financing and the remaining $85 million in Series C funding.
Compute North is not the only company that is facing difficulties due to high energy costs and a low Bitcoin value. Riot Blockchain, a well known mining firm, stated that it is suffering a loss of $36.6 million (USD). In 2019, Iran officially recognized the cryptocurrency mining sector and started issuing licenses to miners, who are required to pay high electricity charges and to sell their mined bitcoins to the Iranian central bank.
The US Whinstone mine is the largest in North America. Whinstone is trying to expand its mining capacity by 700 megawatts (MW). Riot stated that Whinstone will have the best bitcoin mining capacity in the world in the coming years.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/11/23/foundry-and-compute-north-have-reached-an-agreement-to-purchase-two-mining-sites/