Digital Currency Group’s subsidiary and crypto mining firm Foundry Digital plans to acquire two turnkey crypto mining facilities in the United States from the embattled Bitcoin miner Compute North.
In the latest press release, Foundry also said it would also acquire other assets in addition to an option to buy a third facility that is under development from the computing infrastructure company.
Foundry will buy Compute North’s North Sioux City, SD, and Big Springs, Texas. The facilities have a fully operational capacity of 6 MW and 11 MW, respectively. The purchase will also include rights to completely build out and operate Compute North’s facility located in Minden, NE, a fleet of mining machines owned by the firm.
Foundry will also buy intellectual property, including rights associated with MinerSentry, which happens to be Compute North’s proprietary cloud-based management and monitoring software for data centers of scale.
Following the development, Mike Colyer, CEO of Foundry, stated,
“It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles. Compute North has been our longtime partner and we are happy to have the opportunity to continue building upon the foundation they have laid over many years while growing the North American mining ecosystem.”
The acquisition development by the DCG subsidiary comes at a time when another company under its umbrella – Genesis Global Capital – remains on the brink of bankruptcy. Reports suggested that the crypto brokerage is in dire need of fresh capital to recover from FTX’s collapse.
Compute North: Bankruptcy
The Bitcoin mining sector suffered massively as a result of dwindling prices in crypto-assets and increase US interest rates. During the volatile summer, the earnings of several mining companies took a serious hit. Compute North was one of the casualties which filed for Chapter 11 bankruptcy in the US Bankruptcy Court for the Southern District of Texas in September in a bid to stabilize its business under court protection.
The terms of the filing allowed Compute North to continue its operation while chalking out a comprehensive restructuring plan to repay its creditors. The firm disclosed that it owed as much as $500 million to at least 200 creditors, while its assets are worth somewhere between $100 million and $500 million.