When the bear market no longer allows you to be profitable
The bombshell dropped a few days ago with bitcoin (BTC) mining company Compute North filing for bankruptcy. Presented on September 22, 2022, This application the bankruptcy filing was filed under Chapter 11 and with the United States Bankruptcy Court for the Southern District of Texas, which is now pending before Judge David Jones.
For those who do not know, the American company Compute North offers hosting services and facilities around Bitcoin and cryptocurrency mining. For this, it has a significant amount of hardware and its own Bitcoin (BTC) mining pool. By having a large infrastructure in terms of hardware and software, it offers favorable rates to its customers and reduces the costs of its operations. We can also point out that it is one of the largest mining companies with prestigious partners such as Compass Mining and digital marathon.
Unfortunately, the operations are difficult because Bitcoin mining is much less profitable than it was before. Despite the filing of the case, Compute North will continue with its mining activities, while a plan to to pay your creditors will be resolved. In fact, it must be emphasized that the company must $500 million to 200 creditors while the assets of the company are only valued between 100 and 500 million dollars.
This first knee strike from one of the giants of mining is probably just the first in a long series. If the ranging phase in Bitcoin and other cryptocurrencies continues, it is a safe bet that others will follow suit. It is during these difficult times that it is possible to see the most profitable miners and, ultimately, those who use practically free energy through the use of surplus production.