Compute North sells assets to its former lender for $5 million

Generate Capital bought two data centres from the cloud-mining infrastructure-solutions provider Compute North. The deal was worth $5 million, The Block reports.

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

According to the publication, an auction for the sale of Wolf Hollow (Texas) and Kearney (Nebraska) did not take place due to a lack of buyers. Only Generate Capital submitted a bid, and the bankruptcy court has already approved the deal.

In February, Compute North raised $385 million to develop new data centres in the United States. Of this amount, $85 million came from the Series C financing round, with the remaining $300 million in the form of debt financing from Generate Capital.

During the bankruptcy proceedings, the provider’s chief financial officer, Harold Colby, said that the deal had been terminated. According to him, as a result Compute North lost the ability to continue financing unfinished data centres.

Earlier, Arcane Research analysts concluded that mining companies remain financially resilient, despite adverse market conditions. However the vast majority of them posted undistributed losses on their balance sheets, experts noted.

In October, warned Core Scientific of liquidity risk and potential bankruptcy. A similar statement was made by Britain’s Argo Blockchain.

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