Compass Mining has lost the ability to host equipment in a data center in Maine (USA) after the owner of the Dynamics Mining facility terminated the hosting agreement. Company reported on Twitter that the contract has been canceled since June 14 because Compass is not paying electricity bills, writes RBC Crypto.
Effective June 14th @compass_mining facility hosting agreement in Maine was terminated by @dynamics2k for failure to pay power consumption charges. 6 late payments and 3 non payments. @MiningScandals pic.twitter.com/cSfnWMmqTY
— DynamicsMining (@DynamicsMining) June 27, 2022
In Dynamics added, that electricity was used for $1.2 million, and Compass transferred only about $665 thousand. The mining company insists that it allocated money to pay bills. Dynamics responded that the funds were used to build other facilities.
Compass Mining CEO Whit Gibbs said he would take the matter to court and not on Twitter. A spokesman for Dynamics noted that the mining company should have simply paid bills for three months of power consumption.
Compass Mining, a company headquartered in Texas, operates data centers in the US and Canada. The organization is engaged in the sale of equipment and the placement of customer equipment at its facilities. The company also conducted business in Russia, but closed the business after the imposition of sanctions.
Large mining companies are beginning to face difficulties in paying back loans and operating expenses. Enterprises are cutting staff and withdrawing accumulated bitcoins. According to Arcane Research, mining companies sold 100% of the coins they produced in May, while in the first four months of 2022, mining companies sold between 20% and 40% of mined bitcoins.
Core Scientific Inc. already sold over 2,000 bitcoins in May to help cover operating costs, and Bitfarms Ltd. liquidated almost half of the mined tokens in order to repay part of the loan in Galaxy Digital Holdings Ltd. The company also has another equipment loan from New York Digital Investment Group LLC.
Stay in touch! Subscribe to World Stock Market at Telegram.