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DCG subsidiary acquires bitcoin mining facilities and other assets from Compute North

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Crypto mining company Foundry Digital, a subsidiary of Digital Currency Group, plans to acquire two turnkey crypto mining facilities in the United States from beleaguered bitcoin miner Compute North.

In the latest press release, Foundry also said it will acquire other assets in addition to an option to purchase a third facility under development from the computer infrastructure company.

acquisition data

The foundry purchases North Sioux City, SD and Big Springs, TX from Compute North. The facilities have a full operational capacity of 6 MW and 11 MW respectively. The purchase also includes the rights to fully build and operate a fleet of company-owned miners at Compute North’s facility, located in Minden, NE.

The Foundry will also purchase intellectual property, including the rights associated with MinerSentry, Compute North’s proprietary cloud-based management and monitoring software for data centers at scale.

After development, Foundry CEO Mike Collier said:

“It has been our mission to strengthen the digital asset infrastructure by supporting mining companies through all market cycles. Compute North has been a long-standing partner of ours and we are pleased that they have contributed greatly to the development of the North American mining ecosystem. An opportunity to build on the foundations that have been laid over the years.

The development of the acquisition by a subsidiary of DCG comes at a time when another company under its umbrella – Genesis Global Capital – is on the verge of bankruptcy. Reports suggested that the crypto brokerage urgently needs new capital to recover from the collapse of FTX.

Calculated answer: Bankruptcy

The bitcoin mining sector suffered huge losses due to falling prices in crypto assets and rising US interest rates. During the extreme heat, the revenues of many mining companies were severely affected. Compute North was one of the victims who filed for Chapter 11 bankruptcy in September in the U.S. Bankruptcy Court for the Southern District of Texas to stabilize its operations under judicial protection.

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The terms of the filing allowed Compute North to continue operations while establishing a comprehensive restructuring plan to repay its creditors. The company disclosed that it owed as much as $500 million to at least 200 creditors, while assets ranged between $100 million and $500 million.

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source: cryptopotato.com

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