Compass Mining launches first insurance for bitcoin miners

Last Updated: 2 December 2022

Compass Mining is coming up with a new service for bitcoin miners from customers. It offers a ‘protection product’ so that rigs are insured against fire and theft, among other things.

Mining rigs insurance

Compass Mining is a company known for its hosting services. They do this mainly to private customers, bringing together customers’ capital, mining rigs, energy supplier and a data centre, so to speak.

So far, it is very difficult to find insurance for bitcoin miners. Traditional insurers have hardly found their way into this industry. That is why Compass is jumping into this gap.

The new plans protect in case of fire, theft, government action and electrical damage. Jameson Nunney, the company’s chief strategy officer, wrote in a statement:

“Bitcoin mining is a fast-growing, young industry. Simple protection products like this should be considered a financial primitive.”

In what appears to be a $75 million insurance pot has been made available with the partners.

Expanding services

Customers using hosting services at partner sites in Texas, South Carolina, Nebraska and Oklahoma can already use the insurance. Compass will expand it to other places once this first core group has successfully gone through the onboarding process.

Important to note: Compass does not own the facilities. It is merely a broker between customers and facility owners. As a result, they ran into problems recently when it couldn’t pay a utility bill and lost a mining facility in Maine when the owner tore up the contract.

CEO and co-founder Whit Gibbs resigned in June amid a series of “setbacks and disappointments”. Thousands of rigs were also stuck in Russia due to sanctions.

Author

  • I first came into contact with Bitcoin in 2017 - and since then, the topic of cryptocurrencies has never left me. For this reason, I have also made BTC & Co. part of my profession and write as a freelance author for crypto publications.

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