By Andrew Scurria
Compute North Holdings Inc., a data-center owner that houses bitcoin mining rigs and blockchain companies, filed for bankruptcy protection.
Compute North filed chapter 11 in the U.S. Bankruptcy Court in Houston on Thursday. The Eden Prairie, Minn.-based business had closed a fundraising round in February of $85 million in equity and $300 million in debt to support the development of new computing infrastructure.
In addition to data centers in Texas, South Dakota and Nebraska, Compute North's operations also include bitcoin mining and cryptocurrency equipment sales, court papers say.
The February investment round was co-led by commodities group Mercuria and sustainable-infrastructure investor Generate Capital with additional investors including National Grid Partners, while the debt financing was provided by Generate, according to the company.
Compute North's court papers estimated both its assets and liabilities at between $100 million and $500 million. The company is scheduled to appear in bankruptcy court Friday to seek approval of customary motions allowing for operations to continue in chapter 11.
Write to Andrew Scurria at andrew.scurria@wsj.com
_____________________________ Andrew Scurria Bureau Chief, WSJ Pro Bankruptcy The Wall Street Journal Mobile +1 347 244 4608 andrew.scurria@wsj.com 1211 6th Avenue, New York, NY, 10036
(END) Dow Jones Newswires
09-23-22 0032ET
