Compass Mining Launches Bitcoin Miner Protection Plan

The plan is initially available to customers hosted in Texas, South Carolina, Nebraska and Oklahoma.

AccessTimeIconDec 1, 2022 at 3:00 p.m. UTC
Updated May 9, 2023 at 4:03 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Compass Mining, a firm that brokers bitcoin mining machines and hosting services primarily to retail clients, said it is offering its first protection product so that customers can safeguard their bitcoin mining machines.

Insurance options for miners are severely limited, in part because traditional insurers have had a hard time coming up with plans for the nascent industry. The new "low cost" plans protect in case of fire, theft, government action and electrical damage, said Will Foxley, director of content at Compass and a CoinDesk contributor.

"Bitcoin mining is a burgeoning, young industry. Simple protection products like this should be considered a financial primitive," Jameson Nunney, the company's chief strategy officer, said in the statement.

The newly launched product is available to customers hosted in Texas, South Carolina, Nebraska and Oklahoma partner sites. Compass will expand it to other sites after completing the initial rollout to its core clients.

Compass doesn't own the facilities where its clients plug in their machines. It acts as a broker between customers and facilities owners.

"Our protection plan is one step downstream of an over $75 million insurance policy we've created with our brokers," Foxley said.

The mining firm has seen its fair share of trouble in the past few months. CEO and co-founder Whit Gibbs resigned in June amid a series of "setbacks and disappointments," including severe delays in deploying equipment and having thousands of machines stranded in Russia.



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 offers all employees above a certain salary threshold, including journalists, stock 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.