One of the largest data center operators for miners, Compute North has filed for bankruptcy and business restructuring. In addition, the CEO of the company left his post.
Back in February, Compute North raised $385 million in a new funding round. However, the fall of the cryptocurrency market and the subsequent financial problems of mining companies led to the bankruptcy of the equipment placement operator.
“The company has initiated a voluntary bankruptcy procedure under section 11 of the US Bankruptcy Code. This will allow us to stabilize the business and carry out the restructuring process in order to continue to serve our customers and partners, to place the necessary investments to achieve our strategic goals, ”said a company representative.
Compute North CEO Dave Perrill stepped down but remained on the board. Chief Operating Officer Drake Harvey will take over as president of Compute North.
Compute North currently operates two data centers in Texas and one each in South Dakota and Nebraska. Among the company’s clients are such mining giants as Marathon Digital, Compass Mining and Hive Blockchain. It is expected that the restructuring will not affect the operation of already placed mining facilities.
Last July, it was reported that Compute North had plans to host 1.2 GW of mining equipment.