Calculate North’s bankruptcy filings

Compute North, the Eden Prairie-based provider of cryptocurrency mining infrastructure, filed for Chapter 11 bankruptcy in a Texas court on Thursday.

In a filing with the US Bankruptcy Court for the Southern District of Texas, the company said it owes up to $500 million to at least 200 creditors. Compute North, which announced a whopping $385 million raise earlier this year, blames falling cryptocurrency prices and other “adverse market conditions.”

In a statement to the court, CFO Barry Coulby said that “a confluence of events has caused a liquidity crisis that has severely hampered Compute North’s ability to complete the development of several new facilities.”

“Cryptocurrency prices in particular have plummeted — bitcoin prices recently hit lows nearly 75% off their all-time highs set in late 2021 — while tariffs on the electricity required to mine bitcoin have essentially doubled over the past year,” said Colby wrote.

In an email, Compute North spokeswoman Kristyan Mjolsnes said that the voluntary bankruptcy filing provides the company “with an opportunity to stabilize its business and undertake a comprehensive restructuring process that will enable us to continue to serve our customers and partners and the to make the necessary investments to achieve our strategic goals.”

She continued, “To implement the reorganization, the Company and its subsidiaries filed voluntary reorganization petitions under Chapter 11 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas.”

Compute North is based in Eden Prairie, but all data centers are in other states. The company operates facilities in Texas, South Dakota and Nebraska. The company’s data centers provide the infrastructure needed to mine cryptocurrency.

Crypto News Site CoinDesk, which first reported on the bankruptcy on Thursday, said the filing is “likely to have an adverse impact on the industry.” The site also reported that Compute North CEO Dave Perrill has resigned, although he will continue to serve on the company’s board. Chief Operating Officer Drake Harvey has taken his place as CEO CoinDesk.

Over the summer, Perrill was named a winner in the Heartland division of the EY Entrepreneur of the Year program. That put him in the running for the national iteration of the program, though it’s unclear if he’s still eligible.

Mjolsnes confirmed that Perrill has stepped down as CEO but remains on the board.

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