Compute North to join the list of bankrupt companies
Compute North Holdings, which is one of the biggest representatives of the mining industry in the U.S., filed for bankruptcy court. The company has been in business since 2017. In addition, Compute North Holdings had its own BTC-pool.
Based on the requirements for bankruptcy proceedings from Chapter 11, the company will continue to operate but, in parallel, it will develop a plan to pay the debts incurred to creditors. The situation is complicated by the fact that according to the most optimistic estimates, Compute North's assets are under $500 million while the debt level is near $500 million.
The bearish trend has been dominating the cryptocurrency market for a long time. It is causing a lot of problems for both investors and miners. It has led to the fact that Compute North is far the third representative of this sphere, which has suffered significant losses. Thus, at the beginning of the summer, Compass Mining laid off 15% of employees and cut in half management compensation. And a month ago, Stronghold Digital Mining lost equipment to a $67.4 million debt.