Following the collapse in the price of Bitcoin, and other cryptocurrencies, several companies and platforms have declared bankruptcy due to losses.
Compute North, one of the world’s largest Bitcoin mining companies, filed for bankruptcy last week, as reported by specialized media such as The Wall Street Journal and Bloomberg.
The company, dedicated to providing services related to the cryptocurrency, including the data center for the blockchain in which it operates, decided to file for Chapter 11 of the US Bankruptcy Act, which allows companies to reorganize financially under the supervision of the US court.
In this sense, the Bitcoin mining center would be one more victim of the so-called “cryptowinter”, i.e., the bearish period that the cryptocurrency market has been going through for some months.
According to the US media report, the very fall in the price of the asset has caused the mining activity to lose profitability, especially in a context of rising electricity costs and global inflation.
Also, Yahoo Finance reported that decisions by Generate Lending, a Compute North lender, influenced the mining center’s financial situation.
Specifically, according to the portal, Generate would have taken control of some of Compute North’s assets after the latter failed to comply with some technical requirements that were established when both companies signed a loan agreement.
However, a lawyer consulted by the same media clarified that Generate Lending did not directly cause the bankruptcy of the Bitcoin mining company, although it did have an influence in accelerating the situation.
Since last May, the month in which most of the world’s cryptocurrencies began to collapse, several companies have faced serious losses of their capital, and some, such as the Celsius platform, have also declared bankruptcy.