Compute North sells $5 million worth of assets to former lenders

Generate Capital purchased two data centers from cloud mining infrastructure provider Compute North. The Block wrote that the deal was worth $5 million.

In September, the mining company filed for bankruptcy and began developing a plan to restructure its operations. Its liabilities to 200 counterparties are estimated at $500 million, and its assets range from $100 million to $500 million.

Auctions to sell businesses Wolf Hollow (Texas) and Kearney (Nebraska) did not go ahead due to a lack of buyers, according to the publication. The offer was made solely by Generate Capital, and the bankruptcy court has approved the transaction.

In February, Compute North raised $385 million to develop a new data center in the United States. Of this, $85 million was raised in a Series C round, and the remaining $300 million came from Generate Capital’s debt financing.

During the bankruptcy process, the provider’s chief financial officer, Harold Colby, announced the termination of the transaction. As a result, Compute North lost the opportunity to continue funding the unfinished data center, according to him.

Recall that in September, Arcane Research analysts concluded that mining companies remained financially stable despite adverse market conditions. However, experts point out that the vast majority of these reflect retained losses on the balance sheet.

In October, Core Scientific warned about the risk of liquidity drying up and possible bankruptcy. A similar statement was made by the UK-based Argo Blockchain.

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