Connect with us
Active Currencies 14795
Market Cap $2,487,037,106,341.80
Bitcoin Share 51.50%
24h Market Cap Change $1.71

Compute North files for chapter 11- Here’s everything you need to know

2min Read

Share this article

Compute North has become the latest crypto firm to succumb to the ongoing bear market. One of the largest crypto mining data centers, Compute North has filed for voluntary Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas.

More on Compute North

Compute North had a network of data centers in order to host Bitcoin mining firms and it catered to clients in the blockchain, cryptocurrency mining, and distributed computing space by providing sustainable and efficient computing services. The company has a considerable presence in the states of Nebraska, North Carolina, and Texas.

CEO Dave Perrill has relinquished his seat, although he still remains on the company’s board. Meanwhile, Compute North COO Drake Harvey has been named President of the company.

Chapter 11 filing

The bankruptcy filing has revealed that the Minnesota-based company owes as much as $500 million to roughly 200 creditors. The company’s assets are estimated to be worth in the range of $100 million to $500 million. 

The chapter 11 bankruptcy proceedings will allow the company to remain functional and continue its business in order to bring down liabilities. Compute North will likely take this time to stabilize its operations and come up with a strategic restructuring plan.

Rising energy costs and a ruthless bear market are to blame for the company’s woes. According to a Bloomberg report, local regulations in the state of Texas prevented Compute North from monetizing a brand new mining facility that featured 40,000 mining machines with a 280-megawatt capacity. 

The facility was to be energized for one of the company’s partners, Marathon Digital. Power outages and heat waves in Texas only made matters worse. These factors have contributed to the company’s predicament. 

Statements by partner firms

Compute North’s hosting partners have addressed the bankruptcy filing. Marathon Digital informed its users on Twitter that Compute North’s bankruptcy filing will not impact their mining operations. “We are in communication with the hosting provider and monitoring their progress as they work through this process,” the tweet further read. 

Compass Mining, another one of Compute North’s partners, informed its Twitter community that they were closely following the latter’s developments. “Compute North’s staff informed us today that the bankruptcy filing should not disrupt business operations.” they further added.

Earlier this year in February, Compute north concluded a $385 million Series C funding round. The round included an $85 million fundraise co-led by Generate Capital and Mercuria. Generate Capital further provided a $300 million debt financing facility in order to fund the company’s development of new data centers in the country.


Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.