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 Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

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

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

kamino cover.jpg

Research

Kamino has solidified its position as the leading money market on Solana and is emerging as a DeFi bluechip. Although DeFi competition is fierce, Kamino has kept iterating on its product to provide the best-in-class UX, paired with a robust risk management framework and battle-tested infrastructure. Given the rollout of Kamino Lend V2, the protocol may scale aggressively over the coming months, penetrating previously untapped markets in Solana DeFi.

article-image

Also in the tokenized fund space, Franklin Templeton launches on Base and Securitize hits $1 billion in tokenized RWA onchain

article-image

It turns out that bitcoin never actually hit an all-time high in March. Thanks a lot, inflation.

article-image

Spire, Citrea and Nillion also announced raises this week

article-image

The latest recipient of an SEC Wells notice is a Web3 gaming company

article-image

Thursday’s selloff was led by tech stocks, triggered by disappointing outlooks from giants Meta and Microsoft

article-image

Historically, positive returns have been a bit more of a toss-up during the year’s 11th month