The Crypto Winter’s Latest Casualty Is Data Center Firm Compute North
- Company listed as much as $500 million of debt in petition
- Compute North provides data center services for crypto miners
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Compute North Holdings Inc., which provides data center services for cryptocurrency miners and blockchain companies, filed for bankruptcy in Texas on Thursday.
Based in Eden Prairie, Minnesota, Compute North blamed its financial woes on the troubled market for digital assets, the increasing cost of electricity and the time lag between spending to build data centers and getting revenue from those facilities. The decision to file a Chapter 11 bankruptcy now was forced on the company mainly by the actions of its primary lender, Generate Lending LLC, an affiliate of Generate Capital, according to a court declaration filed by Compute North’s chief financial officer and treasurer, Harold Coulby.