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AIBC

Compute North files for bankruptcy under as much as $500m debt

Posted:Sep 23, 2022 14:07 Category: Americas , Blockchain , Crypto , Posted by AIBC Group

Compute North Holdings has filed for bankruptcy protection in a Texas court, becoming the latest victim of the crypto market crash.

The company, which provides data services to crypto miners and blockchain companies, filed for Chapter 11 in a U.S. Bankruptcy Court in the Southern District of Texas on Thursday.

Bloomberg News reports that the company’s filing stated that it owed about $500 million to at least 200 creditors. The company’s assets are worth between $100 million and $500 million. 

Compute North was founded in 2017 and is one of the largest data centre companies servicing the crypto and blockchain space. It says its aim is to disrupt the data centre industry by building and operating the lowest cost computing infrastructure in the world. The company claims to be the pioneer of so-called Tier 0 data centres. 

Compute North grew from fewer than 10 employees in 2018 to a team of more than 80 at the close of 2021. In 2022, the company announced nearly 600MW of capacity from two new data centers in Texas, following the successful close of $385 million in strategic funding earlier this year.

Still, soaring energy costs, rising interest rates and the general collapse in crypto-currency prices have taken their toll. Bitcoin is currently trading below $19,000 from highs of around $70,000. 

Bloomberg reports that the Compute North filed for bankruptcy to provide stability while it restructures its business. 

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