By James Davis
Compass Mining, a Bitcoin hardware firm, revealed today that the court had awarded it $1.5 million after winning a heated battle against Dynamics Mining, its hosting provider. Dynamics argued that Compass defaulted on paying utility bills to a Maine-based facility, so it had to terminate its hosting contract.
Compass offers hardware for mining Bitcoin and hosting services for high-power-consuming machines through partnered facilities. The company filed a lawsuit accusing Dynamics of leveling allegations that lack factual support and that create damage to Compass.
Following the court judgment on Thursday, a Compass representative said today that the situation with Dynamics is common in the crypto industry. In addition, he explained that Compass is focusing on contracting high-quality providers and sustainably growing the firm.
The $1.5 million default judgment against Dynamics includes post-judgment interest and costs. In a statement, Compass cited uncertainty on whether it can obtain the judgment from Dynamics. Nonetheless, the firm’s CEO, Thomas Heller, thanked the court for delivering a just result.
Dynamics Plans to Appeal the Court Judgment
Meanwhile, Dynamics, a firm offering renewable energy mining facilities, announced that it is working on an appeal as it claims that the paperwork submitted was incorrect. In addition, the Dynamics representative alleged Compass for trying to improve its firm’s image by sharing the judgment news.
Cofounder and CEO Whitney Gibbs and Jodie Fisher, the Chief Finance Officer, left Compass immediately after the Dynamics dispute became public. It is yet to be known why the pair decided to step down from their positions.
Ongoing Bear Market Affects Most Bitcoin Miners
2022 has been a rough year for Bitcoin miners. The current harsh market conditions mean that the Bitcoin price has plunged, thus reducing profits for these firms. Also, most companies have had to cash out their Bitcoin reserves to strengthen their liquidity positions.
Bitfarms is one of the many Bitcoin miners impacted by this year’s bear market. The firm might file for bankruptcy as it struggles to repay loans for which it offered bitcoins as collateral. A month ago, another miner, Argo Blockchain, revealed cashing out some of its assets to strengthen its liquidity.