Data center for crypto-miners Compute North went bankrupt

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Compute North, an American cryptocurrency mining service provider, has filed for bankruptcy. About it writes Bloomberg, citing the lawsuit. It is reported that the company owes about $500 million to at least 200 creditors. At the same time, the company’s assets, according to the lawsuit, are estimated at between $100 million and $500 million.

Compute North’s head of marketing, Christiane Mjolsnes, said the company filed for bankruptcy in order to stabilize its business during the restructuring under court protection. However, Compute North did not specify what exactly caused the company’s bankruptcy. At the same time, back in April, the company was actively expanding its business, starting to build a 300 MW mining center in Granbury, Texas.

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At the end of June, co-founder of mining firm Luxor Technologies Ethan Vera said in a media comment that many lenders (Bable Finance, Galaxy Digital, Celsius Network, BlockFi, Foundry Networks) were worried that they had issued too many loans secured by mining devices. According to his calculations, in total, firms issued loans for $4 billion.

Meanwhile, the hashrate and mining difficulty of the largest cryptocurrency by market capitalization have hit new highs. Earlier it became known that against the background of the active growth of the bitcoin hashrate, the cryptocurrency halving moved to the fourth quarter of 2023. Members of the cryptocurrency community were waiting for the halving of the BTC mining reward in the spring of 2024. In case of further growth of the Bitcoin hashrate, halving may be even closer.

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Source: Cryptocurrency

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