US hosting provider terminates agreement with Compass Mining

The hosting provider Dynamics Mining terminated its agreement with Compass Mining, a supplier of equipment and hosting services for Bitcoin mining, over unpaid invoices. The facility is in the state of Maine, United States.

Effective June 14th @compass_mining facility hosting agreement in Maine was terminated by @dynamics2k for failure to pay power consumption charges. 6 late payment and 3 non payments. @MiningScandals pic.twitter.com/cSfnWMmqTY

— DynamicsMining (@DynamicsMining) June 27, 2022

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In the letter, Dynamics says that Compass had six late payments and did not pay three utility and hosting bills. The contract between the firms was terminated on June 14.

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In subsequent posts, Dynamics clarified that Compass’s energy consumption totaled $1.2 million. The mining company paid only $415,000 and put $250,000 down as a deposit.

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“They claim they gave the money, but the funds were used to build out their facilities,” said the hosting firm.

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For clarity @compass_mining power consumption @Dynamics2k totaled $1.2 million and they only paid $415k and $250k initial power deposits. Compass claims that they gave money to @Dynamics2k but the money was used to build out their facilities. #truth pic.twitter.com/9esvuCFulO

— DynamicsMining (@DynamicsMining) June 27, 2022

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In the comments, showed interest in Dynamics’ spare capacity with the prospect of “fast deployment” of devices from Marathon Digital Holdings. The hosting provider said it has 12 MW.

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In the hosting agreement between Compass and clients for hosting services, it states that the company may “from time to time relocate equipment,” providing “reasonably comparable conditions.” The company must notify the user 10 days in advance and give them 5 days to decide. Compass may terminate the agreement with 30 days’ notice.

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The company hosts Bitcoin miners for clients and its own equipment at facilities in the United States and Canada.

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In September 2021, Compass launched a solution for home mining of the first cryptocurrency.

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Earlier in April, the company began seeking buyers for equipment placed in Russia after U.S. sanctions, imposed on BitRiver.

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