Last Updated: 24 November 2022
Mining company Foundry Digital plans to acquire two data centres in the US. The subsidiary of Digital Currency Group has reached a deal with Compute North.
In the press release, Foundry also writes that they have the option to buy a third mining facility. They would also have the option to buy up other assets.
Crypto Mining and Staking Firm Foundry Buys Some of Troubled Bitcoin Miner Compute North's Assets https://t.co/qi8k8zO6bf
— Digital Assets Daily (@AssetsDaily) November 22, 2022
Compute North found itself in cash trouble after it suffered some setbacks. Thanks to the falling bitcoin price and rising power costs, the company could no longer keep its head above water. In September, it filed for a moratorium.
The terms of the filing allowed Compute North to continue operations while working out a comprehensive restructuring plan to repay creditors.
The company revealed that it owed as much as $500 million to at least 200 creditors, while its assets are worth somewhere between $100 million and $500 million.
The two data centres are located in South Dacota and Texas, in North Sioux City and Big Springs, respectively. They have a fully operational capacity of 6 MW and 11 MW.
Both mining farms are now owned by Foundry Digital, which with the purchase also holds the rights to build out Compute North’s facility in Minden.
It also comes with an acquisition of the intellectual property, as well as the rights for MinerSentry. This is Compute North’s cloud-based management and monitoring software for data centres.
Mike Colyer, CEO of Foundry, explains:
“Our mission has been to strengthen the digital asset infrastructure by supporting mining companies across all market cycles. Compute North has long been our partner and we are pleased to have the opportunity to build on the foundation they have laid over many years as they grow the North American mining ecosystem.”
The acquisition comes at a special time. Another company under the Digital Currency Group umbrella, namely Genesis Global Capital, is reportedly on the verge of bankruptcy.
According to sources, the broker urgently needs new capital to recover from the collapse of FTX.