Why did compute North file for bankruptcy?

Compute North’s liquidity crisis and subsequent Chapter 11 bankruptcy filing was driven by five main factors: a halt in funding from Compute North’s primary lender Generate Capital, supply chain issues, dislocation in the capital markets, energy price volatility, and the decline in the price of Bitcoin.

Who is compute North?

Compute North was founded in 2017 and is headquartered in Eden Prairie, Minnesota. The privately-held company develops and operates data centers used by customers in the blockchain, cryptocurrency mining, and distributed computing space.

How much does compute North owe creditors?

Compute North owes as much as $500 million to at least 200 creditors. The company’s assets are worth between $100 million and $500 million, according to its court petition. Chapter 11 filings allow a company to keep operating while it develops a plan to repay creditors.

How much is generated capital funding for compute North?

In February 2022, Generate Capital agreed to lend up to $300 million in project financing to pay for development costs at certain of Compute North’s facilities. Of this total funding from Generate Capital, $101.4 million is currently outstanding.