The mining company for cryptocurrencies, Foundry Digital is getting ready to buy two 17 MW total capacity turnkey mining operations. These will be bought by Foundry from the bankrupt mining firm Compute North. Additionally, it will buy a second mining plant that is now being built. Foundry Digital released a press release on November 22 with these details.
Both Big Springs, Texas, and North Sioux City, South Dakota, are home to the two turnkey Compute North crypto mining operations. Each of these facilities has a 6 MW and an 11 MW operational capacity. Also permitted by Foundry is the reconstruction of Compute North’s mine in Minden, Nevada, which is still under construction.
Along with the mining fleet and intellectual property of Compute North, Foundry would also buy them. Due to its $500 million debt to 200 creditors, Compute North formally requested Chapter 11 bankruptcy protection in September 2022. Amounts between $100 million and $500 million were reportedly the value of the company’s assets.
In the intervening period, Compute North has sold its assets to a number of parties, including its own lender, Generate Capital.
A Challenging Time For The Mining Sector
The bearish market trend has restrained cryptocurrency mining companies worldwide. Due to rising energy costs, increasing hashrate difficulty, and declining token prices, the mining industry has been beset by a string of bankruptcies.
Due to these factors, several cryptocurrency mining companies are finding it difficult to keep up. As a result, numerous businesses filed for bankruptcy. As per Core Scientific, a mining company with headquarters in Texas, cash may run out by the end of 2022, according to a filing with the SEC made last month. Revenue for Colorado-based mining company Riot Blockchain Inc. decreased by more than 17% in the third quarter of this year.
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In addition, according to its most recent SEC filing, Australian mining company Iris Energy also missed a payment on a $107.8 million loan. The equipment it had been using as collateral was then unplugged, reducing its mining capacity.
As this bear market continues to decline and the story surrounding the FTX crash develops, several large miners with liquidity problems may declare bankruptcy.