- Low Bitcoin Prices and Rising Energy Prices Hurt Mining Companies
- According to Arcana Research, the daily income of Bitcoin miners has fallen by 70% since the November 2021 peak.
Crypto mining data center operator Compute North has filed for bankruptcy in Texas, the latest victim of a bear market marred by a sharp drop in the price of bitcoin and rising electricity prices.
The petition was filed on Thursday in the United States Bankruptcy Court for the Southern District of Texas.
The Minnesota-based firm owes at least $500 million to at least 200 creditors, according to the filing. His assets are worth between $100 million and $500 million.
In an estimate of the funds available, Compute North said it would not have capital to distribute to unsecured creditors once administrative expenses have been paid.
Compute North started out in 2017 as a cryptocurrency mining company, but in 2018 changed its focus to providing collocation services. his website shows.
The firm last raised $385 million in debt financing in February, according to Crunchbase. His investors include Mercuria, National Grid Partners and Generate Capital.
Volatile bitcoin prices and rising electricity costs have hurt the profitability of crypto miners, and many home miners who once minted money in their garages have found themselves struggling.
Arcane Research noted that the daily income of bitcoin miners has fallen by more than 10% over the past week, bringing in $17.9 million per day, the lowest level since November 2020. This is less than the $62 million a day at the peak of the cryptocurrency bull market in November. 2021.
Delays caused by energy supplier Compute North prevented one of its biggest clients, Marathon Digital, from activating its mining machines for several months earlier this year. Marathon had about 40,000 mining machines at the company’s West Texas facility, which housed a 280 MW bitcoin mining rig.
Compute North and Marathon Digital did not respond to Blockworks’ request for comment at the time of publication.
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