Sustainable bitcoin mining company files for bankruptcy in the US

Compute North, the hosting company of ASICs for sustainable bitcoin mining structure, has filed for bankruptcy and shares of miner Marathon, a client of the company, are down 10% on Friday.

Sustainable Bitcoin Mining by Compute North

Compute North is a company that provides hosting services for ASICs that run on renewable energy and carbon neutral in the US, offering the possibility for companies to achieve sustainable bitcoin mining.

“We offer solutions for investors and miners with medium to large operations. Compute North has developed the strategic infrastructure that helps mining professionals better capitalize on one of the most exciting opportunities in today’s market.” – As stated on their website.

“Host your hardware in facilities that focus on energy efficiency and take advantage of a combination of energy from wind, solar and carbon-free assets.”

THE energy efficiency it is a trend that has been growing in the business world and also in the discussions of major decision makers, with strong regulatory pressure, especially potentiated by the recent energy crises resulting from the war between Russia and Ukraine.

🪫 Toda essa crise energética mundial vai destacar a importância da EFICIÊNCIA ENERGÉTICA.

Não apenas pela sustentabilidade ambiental, mas por fazer com que as pessoas vejam que a energia é escassa, cara e a eficiência é necessária.

👥 A humanidade sempre buscou eficiência… +

— vinibarbosa.Ӿ (@vinibarbosabr) September 6, 2022

This pressure was one of the great motivators for the formation of the Bitcoin Mining Council, of which Marathon Digital Holdings (a customer of Compute North) is a member. And the discussion reached the White House, which has been studying possible attacks against the proof-of-work mining.

All this has mobilized the industry and the market to find solutions for sustainable, energy-efficient bitcoin mining.

Marathon (MARA) is a client and main creditor of the bitcoin sustainable mining service

Among Compute North’s major clients is Marathon Digital Holdings, one of the largest Bitcoin miners in the world, listed on the NASDAQ stock exchange under the MARA ticker.

In late 2021, both companies entered into negotiations to host more than 100,000 sustainable bitcoin mining ASICs, as part of Marthon’s strategy to reduce energy consumption on North American soil, improving energy efficiency and decreasing energy emissions. carbon with the activity, to adapt to possible regulatory threats.

The report issued by the Bitcoin Mining Council, which addresses the use of 59% renewable energy for mining, possibly accounted for this Compute North operation on one of the top board members (MARA).

Compute North files for bankruptcy and impacts Marathon shares

On Thursday, September 22nd, Compute North opened a filing for bankruptcy under chapter 11 of US law. Demonstrating financial difficulties in its sustainable bitcoin mining operations, among other services offered by the company.

Speaking with Bloomberg’s Steven Church and David Pan, Kristyan Mjolsnes, head of the marketing and sustainability team at Compute North, explained that the company is looking to stabilize operations.

“Compute North is looking for the opportunity to stabilize its business and implement a comprehensive restructuring process”said Mjolsnes. “[Isso] will allow us to continue serving our customers and partners and make the necessary investments to achieve our strategic objectives”, explained the company executive.

The bankruptcy filing came after the company raised about $410 million in equity and debt financing this year.

The official Marathon account posted on Twitter that: “Based on the information currently available, we understand that this order [de falência] will not affect our current mining operations.”

Despite the statement that even with some of its sustainable hashrate possibly being cut it will not affect Marathon’s mining activity, its shares have plummeted by more than 10% in the last 24 hours.

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