Compute North, one of the largest cryptomining data center operators, has filed for bankruptcy and revealed that its CEO has resigned as a sharp drop in cryptocurrency prices weighs on the industry. CoinDesk reports: The company filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas and owes $500 million to at least 200 creditors, according to the filing. Compute North announced a $385 million capital raise in February, consisting of an $85 million Series C equity round and $300 million in debt. But it has gone bankrupt as miners struggle to survive amid falling bitcoin (BTC) prices, rising electricity costs and record difficulty in mining bitcoins. The application could have negative implications for the industry. Compute North is one of the largest data center providers for miners and has several deals with other major mining companies.
“The company has initiated voluntary Chapter 11 proceedings to allow the company to stabilize its business and implement a comprehensive restructuring process that will allow us to continue serving our customers and partners and make the necessary investments to achieve our strategic goals,” a spokesperson told CoinDesk in an email statement. CEO Dave Perrill resigned earlier this month but will continue to serve on the board, the spokesman added. Drake Harvey, who served as chief operating officer for the past year, has taken over as president of Compute North, the spokesperson said. Compute North has four facilities in the U.S. – two in Texas and one each in South Dakota and Nebraska, according to its website.