Bankrupt crypto mining data center firm Compute North is selling its assets of about 11 containers worth $1.55 million to Bitcoin (BTC) mining company Crusoe Energy System.
According to a document filed by the United States Bankruptcy Court of the Southern District of Texas, the asset purchase agreement between both parties has been approved. Hence, authorities of both companies can now conclude the transaction as the court has carried out a due investigation to ensure the authenticity of the agreement.
However, the court entered a bidding procedure order on October 24. According to the agreement, Crusoe is to pay approximately $140,636.36 for each container, up to $1,547,000 for the 11 containers. Up until now, the Bitcoin mining firm had only made a down payment of $187,000 since October 28.
In an effort to consolidate its business, the Denver-based firm recently announced the successful acquisition of Great American Mining operational assets. While other mining companies are struggling to meet up with debt payments, Crusoe is doing so well with his acquisition.
Compute North and Crypto Firms’ Bankruptcy
While some crypto firms have managed to scale through the crypto winter, many are still drowning and are adopting the option of bankruptcy. Filing for bankruptcy has been seen as the most logical way for a company to maintain continuity in the long run.
Compute North in September filed for bankruptcy as a result of its unpaid loan from one of its major lenders Generate Capital, amongst other underlying reasons. The firm is still seeking protection from its creditors while also trying to stabilize the business via a restructuring process.
Meanwhile, Voyager Digital also filed for Chapter 11 bankruptcy days after it suspended withdrawals. The filing which was made in the U.S Bankruptcy Court of the Southern District of New York will help the firm in restructuring its business in a bid to provide value for all its users.
The latest bankruptcy filing is that of the crypto exchange FTX which was filed in the United States. Its CEO Sam Bankman-Fried also resigned from its position. The crypto industry has not been the same since the collapse of the exchange.