Generate Capital bought two data centres from the cloud-mining infrastructure-solutions provider Compute North. The deal was worth $5 million, The Block reports.<\/p>\n
In September, the mining company filed for bankruptcy<\/a> and began devising a plan to restructure its operations. Its liabilities to 200 counterparties are estimated at $500 million, and assets range from $100 million to $500 million.<\/p>\n According to the publication, an auction for the sale of Wolf Hollow (Texas) and Kearney (Nebraska) did not take place due to a lack of buyers. Only Generate Capital submitted a bid, and the bankruptcy court has already approved the deal.<\/p>\n In February, Compute North raised $385 million<\/a> to develop new data centres in the United States. Of this amount, $85 million came from the Series C financing round, with the remaining $300 million in the form of debt financing from Generate Capital.<\/p>\n During the bankruptcy proceedings, the provider’s chief financial officer, Harold Colby, said that the deal had been terminated. According to him, as a result Compute North lost the ability to continue financing unfinished data centres.<\/p>\n Earlier, Arcane Research analysts concluded that mining companies remain financially resilient<\/a>, despite adverse market conditions. However the vast majority of them posted undistributed losses on their balance sheets<\/a>, experts noted.<\/p>\n In October, warned Core Scientific<\/a> of liquidity risk and potential bankruptcy. A similar statement was made by Britain’s Argo Blockchain<\/a>.<\/p>\n