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.
Up Next: AIBC Malta Week 2022
After the successful completion of the AIBC Toronto and Dubai Summits, SiGMA Group is working diligently on this year’s edition of Malta Week. From the 14th to the 18th of November, the company’s most prominent brands will be brought together under one roof for the AIBC Europe Summit, the premier networking opportunity of the year. The Summit at MFCC Ta’Qali is a stellar expression of European innovation in the Gaming, Esports and Emerging Tech sectors, featuring numerous panels and conferences by leading experts. Interested in joining our long list of speakers, exhibitors or sponsors? Please contact Sophie to reserve your spot, or visit our website for more information.