Compute North files for Chapter 11 bankruptcy

Bitcoin mining hosting provider Compute North has filed for Chapter 11 bankruptcy in a Texas court.

The petition was submitted on Thursday to the US Bankruptcy Court for the Southern District of Texas.

“After any administrative expenses are paid, no funds will be available for distribution to unsecured creditors,” the company claimed in the filing.

The company is seeking “the opportunity to stabilize its business and implement a comprehensive restructuring process,” said Kristyan Mjolsnes, head of marketing and sustainability. “(It) will enable us to continue servicing our customers and partners and make the necessary investments to achieve our strategic objectives.”

Compute North has between $100 million and $500 million both in estimated liabilities and estimated assets, according to the filing.

The company raised $385 million in equity and debt funding earlier this year to finance its new bitcoin mining data centers.

Among Compute North’s list of clients are some of the biggest bitcoin mining companies, including Marathon, which secured a 42-megawatts hosting deal in July.

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