Crypto Mining and Staking Firm Foundry Buys Some of Troubled Bitcoin Miner Compute North's Assets

Foundry will buy two mining facilities and has an option to acquire a third site that is under development.

AccessTimeIconNov 22, 2022 at 11:29 p.m. UTC
Updated Nov 23, 2022 at 4:06 p.m. UTC

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

Crypto mining and staking firm Foundry will buy two "turnkey" crypto mining assets with a total of 17 megawatt (MW) capacity from bitcoin miner Compute North, which filed for Chapter 11 bankruptcy protection in late September

Foundry will buy Compute North's sites in North Sioux City, South Dakota, and Big Springs, Texas, that have a fully operational capacity of six MW and 11 MW, respectively, according to a statement on Tuesday.

Compute North, one of the world's largest bitcoin mining firms, said in September that it couldn't fulfill debt obligations worth up to $500 million. Since then, its assets have been sold off to different entities, including its own lender, Generate Capital, which bought the company's stake in two mega-mining facilities for $5 million, earlier this month.

As part of the deal, Foundry will also have rights to completely build out and operate Compute North's facility in Minden, Neb. The deal will also include rights to a fleet of mining machines owned by the miner, as well as its intellectual property, the statement said.

"It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles," said Mike Colyer, CEO of Foundry, in the statement. "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."

Foundry is a subsidiary of Digital Currency Group (DCG), the parent company of CoinDesk.

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Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets

CoinDesk - Unknown

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets