Compass Mining Third-Party Partners in Georgia shuts Down Activities

A spike in energy cost has caused two partner hosting firms of bitcoin mining company Compass Mining to shut down their activities in Georgia. 

The bitcoin mining and hosting company experienced up to a 50% increase in electricity tariff even as the cost of electricity increased in the United States. As a result, the company plans to move shop to Texas transporting approximately 5,000 machines in the process.  

Interestingly, the company was not aware of the new development until Wednesday when it was told. As per the published announcement, “the facility owner is closing its Georgia facilities to protect miners from excessive energy rate changes recently applied by the local utility.” 

Compass Mining started its operations two years ago as a hosting and digital assets mining firm. With its aim of decentralized growth, the platform tries to make bitcoin mining profitable for its users. 

Compass Mining permits its retail users to own a small amount of mining capacity which can be purchased at different sites around the world. Interestingly, Compass Mining does not have ownership rights to any of the facilities in the outfit where it conducts its operations.

Compass Mining Faced With Several Oppositions

Significantly, the firm has been through a lot of opposition ranging from delay in deployment, and downtime issues to stuck mining rigs in Russia. 

Like many other crypto firms in this time of prevalent market conditions, Compass Mining experienced a series of resignations from its top executives. CEO and co-founder of the firm, Whitney Gibbs alongside Chief Finance Officer Jodie Fisher have both resigned. 

After their resignation, both Paul Gosker who was the Chief Technology Officer and Thomas Heller, the Chief Mining Officer had to step in as interim co-CEOs. Charging forward for a new regime, the new management cut down the BTC mining team by 15%. 

Now that the Georgia site which hosts about 5,000 machines for Compass clients has shut down, interested customers can request the transportation of the facilities to Texas. Once the movement commences, it is likely to take up to one month to achieve. 

According to the new co-CEO, Heller, “the Georgia facilities were ‘very solid until now’ because the operator was very good. Compass expects the same to hold true for the Texas site, which is managed by the same company.”