Compute North’s Business Goes South

Crypto data center operator, which provides infrastructure for crypto miners, has filed for bankruptcy protection


Blockworks exclusive art by axel rangel


key takeaways

  • Low bitcoin prices and rising energy costs have hurt mining companies
  • Daily revenue for bitcoin miners has fallen 70% since the peak of November 2021, Arcana Research data showed

Crypto mining data center operator Compute North filed for bankruptcy in Texas, marking the latest victim of the bear market environment marred by a steep drop in bitcoin prices and rising power costs.

The petition was filed on Thursday in the Southern District of Texas US bankruptcy court.

According to the filing, the Minnesota-based firm owes as much as $500 million to a minimum of 200 creditors. Its assets are worth between $100 million to $500 million. 

Under its estimation of available funds, Compute North stated that it would have no capital to distribute to unsecured creditors after payment of administrative expenses. 

Compute North began in 2017 as a crypto mining firm, but changed its focus to providing co-location hosting services in 2018.  In March, it grew to 100 employees and in April, it launched a 300-megawatt data center in Granbury, Texas, its website shows.

The firm last raised $385 million in debt financing in February, according to Crunchbase data. Mercuria, National Grid Partners and Generate Capital are among its investors. 

Faltering bitcoin prices and increasing power costs have hurt crypto miners’ profitability, with many at-home miners who once minted money from their own garages finding they’re now struggling. 

Arcane Research noted that daily revenue for bitcoin miners fell over 10% in the last week, generating $17.9 million per day — the lowest level since November 2020. That’s down from revenues of $62 million a day at the peak of the crypto bull market in November 2021.

Delays caused by Compute North’s energy provider prevented one of its biggest clients, Marathon Digital, from activating its mining machines for months, earlier this year. Marathon held about 40,000 mining machines in the firm’s West Texas facility, which had a 280-megawatt bitcoin mining facility.

Compute North and Marathon Digital didn’t return Blockworks’ request for comment by press time.

Don’t miss the next big story – join our free daily newsletter.


Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg


Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.


MicroStrategy discloses the purchase of 16,000 bitcoin throughout November


Digital asset firms face potential new regulatory landscape under Treasury’s proposed authority expansion


Uniswap Labs will be providing trading APIs to Talos investors through Fireblocks


DYDX supply will climb by up to 80% after the Friday unlock, but a couple factors make a massive sell-off appear unlikely


Switzerland-based Pando Asset, which has crypto products trading on the SIX Swiss Exchange, now looks to the US


Binance does not hold the required licenses to advertise and serve customers in the Philippines, the country’s securities regulator said