Foundry to buy two mining centres from the bankrupt Compute North

The DCG-owned Foundry Digital заключила agreement with Compute North to acquire two operating cryptocurrency mining facilities and other assets.

DCG’s subsidiary also received an option to purchase an unfinished mining facility of the blockchain-hosting provider, which is in the process of bankruptcy.

Foundry expects to receive, upon completion of the deal:

• two turnkey data centres in North Sioux City, South Dakota and Big Spring, Texas, with capacities of 6 MW and 11 MW respectively;
• the right to complete construction and operate the facility in Minden, Nebraska;
• Compute North’s equipment park;
• intellectual property for the provider’s proprietary MinerSentry cloud software for data-centre management.

“Our mission is to strengthen the infrastructure of digital assets, supporting mining companies through all market cycles. Compute North has been our long-time partner, and we are pleased to have the opportunity to continue building on the foundation they have laid over many years, advancing the mining ecosystem in North America,” said Foundry CEO Mike Colyer.

In August 2020, Foundry became 100% a “subsidiary” of DCG. The company runs the largest by hashrate Bitcoin mining pool and a marketplace for mining equipment FoundryX.

The agreement with Compute North comes amid concerns within the community about DCG’s financial resilience. On November 16, another group subsidiary, the OTC platform Genesis Global Capital, froze withdrawals and the issuance of new loans after the FTX collapse.

According to media, even before this decision the firm sought emergency financing of $1 billion to plug liquidity shortfalls.

According to Messari founder and CEO Ryan Selkis, Genesis would need to raise at least $500 billion to avoid bankruptcy.

According to The Wall Street Journal, the Bitcoin exchange Binance refused to bail out the OTC platform.

In the mining industry, one of the sector’s largest players — Core Scientific — warned of potential insolvency. British Argo Blockchain said there were serious financing problems and possible cessation of mining operations of cryptocurrency.

Earlier in November, a bankruptcy court approved the sale by Crusoe Energy Systems of eleven mining containers from Compute North for about $1.55 million.

Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, rates and analysis.