Compute North, a cryptocurrency mining data center, has filed for Chapter 11 bankruptcy at a Texas court as the firm owes around 200 creditors $500 million. Backed by Generate Capital, the Minnesota-based faced issues with paying debts to its lender.
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Compute North estimates that its assets are worth between $100 million and $500 million. Out of the $300 million credit, which was given to Compute North by Generate Capital in February this year, a little over $100 million is now outstanding.
Among Compute North's clients are crypto mining firms Marathon Digital and Compass Mining. Compass Mining took to Twitter to assure its clients that Compute North's bankruptcy filing "should not disrupt business operations."
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