Bankrupt Miner Compute North Destined for Obscurity as Judge Approves Restructuring Plan

A judge approved the mining firm, Compute North’s restructuring program after it filed for bankruptcy in September 2022.

According to the mining firm’s lawyer James Grogan, the firm reportedly reached agreements to pay three final firms after selling assets to cover $250 million in secured debt.

Compute North Will Settle With Marathon Digital for $40 Million

Twelve creditor firms, including Marathon Digital, had to settle for claims for the judge to approve the plan. Compute North creditor Marathon had to settle for $40 million despite being owed $50 million.

The last three firms to agree to the restructuring plan were customer Decimal Digital, mining infrastructure developer Corpus Christi Energy Park, and BitNile.

Customers Decimal Digital and BitNile had tapped Compute North to host mining rigs it supplied, while infrastructure builder Corpus Christi Energy Park agreed to a claim of $5 million. Decimal Digital will receive its machines back, while BitNile will settle for a $1 million claim.

Compute North filed for bankruptcy in Sep. 2022 partly due to energy-related delays in bringing Marathon Digital’s machines online. At the time, chief marketing officer Kristyan Mjolsnes said the firm had over 200 creditors. No mention has been made of liquidations, which means that the firm will likely continue doing business, albeit on a reduced scale.

Mining Industry Consolidates After Brutal Bear Market

The Bitcoin mining industry has recently undergone consolidation as smaller miners seek to remain in business following a tough 2022 that saw confidence in the crypto industry left in tatters.

Argo Blockchain recently borrowed money from and sold its flagship Helios mining facility to crypto financial services firm Galaxy Digital to ensure its survival. Other firms either returned or sold mining machines to lenders in exchange for extinguishing debt. 

Most recently, Canadian mining outfit Hut 8 merged with American miner U.S. Bitcoin Corp in a deal that jointly values the firms at $990 million. Hut 8 was an Ethereum miner before the blockchain changed its consensus mechanism from proof-of-work to proof-of-stake. 

According to U.S. Bitcoin’s co-founder and CEO Mike Ho, Hut 8 survived the recent bear market through discipline. At the same time, other larger public miners borrowed excessively to fund expensive mining rig purchases.

A recent analysis by Hashrate Index on the debt of mining firms singled out public miner Core Scientific as the most indebted miner, owing $1.3 billion, with Marathon Digital close behind at $851 million.

Proof-of-Stake Crackdown Coincides With Mining Boom

Proof-of-stake chains are secured by participants who lock up or stake tokens in a smart contract on the chain to earn rewards for validating transactions. 

While different forms of staking exist, some crypto exchanges ease the burden of earning rewards through custodial staking services. These staking services allow customers to play a part in validating transactions without setting up their infrastructure.

Recently, the U.S. Securities and Exchange Commission filed an enforcement action against crypto exchange Kraken, alleging that its staking services constituted as an unregistered security. Kraken settled with the SEC for $30 million, but the lawsuit may be an unexpected boon for Bitcoin miners.

Since the start of the year, the total Bitcoin hashrate, a measure of computing resources deployed to validate transactions on the network, has risen from 253,000 petahashes per second to 304,000 petahashes per second.

Daily Bitcoin Mining Hashrate | Source:

The Bitcoin Hashprice Index, which measures how much miners can earn from a given allocation of computational resources measured in petahashes per second, is up 30% this year to $78.45 per petahash per second per day.

Bitcoin Hashprice Index | Source: Hashrate Index

A recent NFT-like project on Bitcoin, called Ordinals, caused miners to reap $114,000 in transaction fees on Feb. 14, 2023.

For Be[In]Crypto’s latest Bitcoin (BTC) analysis, click here.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)
ClosePlease loginn

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)
ClosePlease loginn

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)
ClosePlease loginn

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)
ClosePlease loginn

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)
ClosePlease loginn

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)
ClosePlease loginn

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)
ClosePlease loginn

Leave a Reply

Your email address will not be published. Required fields are marked *