Nuclear Bitcoin Mining Hits Snag as UK Startup Sells Business

Lake Parime, which hosted bitcoin miner Marathon Digital at a nuclear energy-powered site in Ohio, has been sold to Statar Mining after a “cash crisis”

article-image

TonyV3112/Shutterstock.com modified by Blockworks

share

A firm that was building out a nuclear energy-powered mining facility in Ohio is the latest victim of tough crypto market conditions. 

UK-based Lake Parime, a company focused on transforming energy into zero-carbon computing power, has been acquired by Statar Mining. 

The group’s recently-acquired bitcoin mining hardware decreased in value as bitcoin prices fell, according to restructuring specialist Interpath Advisory. Interpath’s Ed Boyle and Will Wright became joint administrators to Lake Parime Limited on Jan. 27.

A number of projects Lake Parime had invested in “fell away,” according to Interpath, leaving the company in “an immediate cash crisis.” 

A solvent solution could not be found, the advisory firm added. As a result of the sale to Statar Mining, 16 Lake Parime employees have joined the acquirer. 

The sale comes as Compute North and Core Scientific have filed for bankruptcy in recent months, and industry watchers had said they expect more casualties in the mining space this year.

“The current crypto winter has posed challenges for many companies operating across the crypto spectrum,” Boyle said in a statement. “In this particular instance, the price of bitcoin fell by more than 60% over the course of 2022, which in turn impacted Lake Parime’s ability to raise finance.”

It is unclear where Statar Mining is based. The company could not be reached. 

Spokespeople for Lake Parime and Interpath Advisory did not immediately return requests for comment. 

Nuclear energy could still play larger role in bitcoin mining

Lake Parime had revealed in November that it launched a site in Ohio using 100% nuclear energy.

“We’re excited to expand our site portfolio from largely wind and hydropower to nuclear energy, showcasing the huge potential of our deployments in accelerating the energy transition,” Lake Parime CEO Sath Ganesarajah said in a statement at the time. 

Executives at bitcoin miners Marathon Digital and TeraWulf told Blockworks last week they were bullish on the prospect of more bitcoin miners using nuclear energy at scale in the years ahead if the power industry cooperates. TeraWulf recently revealed it is setting up operations at a nuclear energy-powered data center in Susquehanna, Pennsylvania.

Lake Parime’s 20 megawatt Ohio site’s hosting clients were Marathon Digital and TAAL, a company that offers blockchain services and infrastructure.  

Charlie Schumacher, Marathon’s vice president of corporate communications, told Blockworks last week the Ohio site is a good way for Marathon to “test the waters” about potentially using nuclear energy on a larger scale.

It is unclear how the sale will affect Marathon’s operations at the site. A company spokesperson did not immediately return a request for comment.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

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

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.