By Michael Scott
The bankruptcy filing by Compute North compelled BitNile to prioritize its business interest by relocating miners from the Texas-based Wolf Hollow facility.
The sudden twist warranted a prompt decision to relocate the miners to BitNile’s data center in Michigan. The firm anticipates concluding the relocation by February 28.
Relocating Miners to Secure Subsequent Deployment Plans
BitNile’s tweet portrayed regret that the crypto mining situation was frustrating following the Compute North bankruptcy. The tweet revealed that BitNile was undertaking a legal divorce to assume control over the mining equipment.
The update portrayed the relocation as safeguarding BitNile’s capability to satisfy subsequent deployment plans. The current BitNile situation traces to the August 2022 hosting agreement to secure 20 MW of power from Compute North.
BitNile is an autonomous operating subsidiary of Ault Alliance, Inc. Recently, Ault Alliance reorganized its portfolio to pursue undervalued businesses for acquisition.
Also, Ault Alliance pursues disruptive technologies for acquisition. Among the strategic investments is the data center tasked with offering mission-critical solutions and mining Bitcoin.
Terminating Hosting Agreement with Compute North
The agreement prompted BitNile to move over 6500 Bitcoin miners to the Wolf Hollow facility. The second relocation from the Texas location arises from Compute North’s decision to file for Chapter 11 bankruptcy.
The bankruptcy proceedings would trigger a stream of actions, among them transferring the Wolf Hollow facility’s ownership.
The events led BitNile to conclude that retaining its mining equipment on the site proved economically unviable. It prompted the need for weekly shipments to safe and secure locations awaiting subsequent deployment.
BitNile’s executive chairman Milton Ault admitted that the mining firm confronted a frustrating period. Nonetheless, he restated that the firm is undertaking a legal process to terminate the agreement with Compute North to regain control over its equipment.
BitNile’s Pursuit of Additional Bitcoin Miners
BitNile confirmed securing a purchase agreement to acquire 23065 bitcoin miners from Bitmain Technologies Limited. The acquisition will involve the acquisition of 4600 S19 XP Antminers that are environmentally friendly with an estimated processing power averaging 140 terahashes per second (TH/s).
Also included are Pro Antminers with 100 TH/s processing power and 1140 S19 XP hydro Antimers with 255 TH/s processing power. BitNile projects to increase its mining production capacity to 2.66 exahashes per second when the miners realize full operation.
Forecasting Viability of Future Business
BitNile executives observed that its future operations are vulnerable to the timely delivery and installation of miners. Also, its revenue generation is subject to the volatile market price of Bitcoin and mining difficulty levels.
BitNile executive Milton Ault revealed that the capability of Agora Digital Holdings to raise the necessary capital to fund the Texas power plant would influence its mining activities.
Ault confirmed that BintNile contracted Agora to supply power to its Texas mining. Failure to honor the project’s completion timeline would jeopardize BitNile’s operations.