By George Ward
Foundry, a crypto mining company, is ready to take over the mining facilities of crypto miners and start mining operations immediately. These mining facilities have a total capacity of 17 MW.
It will acquire these mining facilities from rival Compute North, which has gone bankrupt. Additionally, Foundry will buy another crypto mining facility under development.
Foundry Digital provided details of its planned acquisitions in its latest weekly news release. The two mining facilities belonging to Compute North are located in Big Springs, Texas, and North Sioux City, South Dakota.
The facility in North Sioux City has operational capabilities of 6 MW, while that in Big Springs, Texas, has operational abilities of 11 MW. In addition, once the acquisition is complete, Foundry is entitled to reconstruct the mine that Compute North is currently building in Minden, Nevada.
Compute North’s collection of mining machinery, and intellectual property will be purchased by Foundry crypto mining firm. Recall that Compute North made a bankruptcy filing two months ago.
The filing is because it owed creditors approximately $500 million. These creditors are about 200.
The corporation’s assets were estimated to be worth between $100 million and $500 million. Since its bankruptcy filing, Compute North has been selling its assets to buyers, including Generate Capital, its lender.
A Challenging Period For The Mining Sector
The long-term bearish market has caused a significant setback for crypto firms, especially crypto mining companies. Other factors, such as increasing hashrate difficulty, a hike in energy expenses, and a decrease in the price of tokens, have further contributed to a string of bankruptcies in the mining sector.
This period has been so challenging that several mining firms continue to struggle. Some notable crypto mining firms, such as CoreScientific, have notified the US SEC that they can run out of cash before the end of this year.
In its latest earning report, another mining firm Riot Blockchain Inc. (with headquarters in Colorado), revealed a 17 percent fall in its total revenue for Q3 2022.
As this bear market continues and the story surrounding the FTX crash develops, more crypto miners will likely declare bankruptcy due to liquidity problems.