Lender Generate Capital to Buy Bankrupt Bitcoin Miner Compute North's Stake in 2 Bitcoin Mining Facilities

The lender is paying $5 million in cash and assuming liabilities associated with the two sites, which total 400 MW of operating capacity.

AccessTimeIconNov 1, 2022 at 8:01 p.m. UTC
Updated May 9, 2023 at 4:01 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Lending firm Generate Capital is buying up bitcoin mining hosting firm Compute North's stake in two mega-mining facilities for $5 million, Tuesday bankruptcy filings show.

Compute North, one of the largest bitcoin mining firms in the world, declared bankruptcy in late September, saying it can't fulfill debt obligations worth up to $500 million.

  • DCG Reaches In-Principle Deal With Genesis Creditors
    02:26
    DCG Reaches In-Principle Deal With Genesis Creditors
  • Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
    04:58
    Celsius Can Start Converting Altcoins to Bitcoin, Ether as of July 1, Judge Says
  • FTX EU Starts Process of Allowing Customers to Withdraw Funds
    07:24
    FTX EU Starts Process of Allowing Customers to Withdraw Funds
  • SVB Financial Group Files for Chapter 11 Bankruptcy Protection
    04:30
    SVB Financial Group Files for Chapter 11 Bankruptcy Protection
  • Generate Capital agreed in February to lend the hosting firm up to $300 million for the development of two sites, a 300 megawatt (MW) facility in Wolf Hollow, Texas, and a 100 MW one in Kearny, Nebraska, said Compute North's chief financial officer, Harold Coulby, in previous testimony. An entity called CN Pledgor LLC owns 100% of the Wolf Hollow and Kearney facilities through its total ownership of CN Borrower LLC , Coulby said.

    According to purchase agreement, the lender was the only one to bid for CN Pledgor's equity of CN Borrower, and the court approved the sale.

    Coulby claimed that, in July, Generate Capital "asserted several technical events of default" in order to take control of Compute North assets, triggering the miner's chapter 11 bankruptcy.

    Fast forward to November, and Generate is fully buying out Compute North's sites for $5 million and is assuming several liabilities associated, including obligations to clients that host their machines at their sites, according to the agreement.

    The process of connecting the Wolf Hollow plant to the Texas grid, managed by the Electricity Reliability Council of Texas, has not been completed, the agreement said.

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.