Generate Capital buys Compute North capacity

  • 20:42 Nov 03, 2022
Generate Capital buys Compute North capacity

On November 1, an auction was held, where Compute North's mining capacities were offered for purchase. Generate Capital won as the only bidder.

The amount invested in two sites with a combined capacity of 400 mW is $5 million. To the volume of acquired facilities, this is of very little value. The fact is that there is a debt encumbrance, which reaches $500 million.

However, we cannot say that the buyer was left on the losing end. Generate Capital took a strategic move. In February, it provided Compute North with $300 million in debt financing to build those facilities.

In September, Compute North began bankruptcy proceedings under which it was given the option to continue operations under protection from creditors. That included Generate Capital. According to the bankrupt miner's statement, the financial difficulties arose because of the rising cost of electricity and the fact that the facilities could not reach the break-even point in time.

As for Generate Capital, the mining business is fundamental to it. The company not only has significant financial opportunities but also develops several projects in green energy.

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