Dynamics Mining Terminates Hosting Contract With Compass Mining

The challenges rocking the broader digital currency ecosystem are gradually trickling down to the crypto mining industry with big names now being dragged on social media. One of the latest episodes involves mining facility service provider, Dynamics Mining has announced the termination of its hosting agreement with Compass Mining over unpaid fees and charges.

According to Dynamics Mining, Compass made late payments for 6 electricity consumption fees and has not made any payment in about three months. The letter containing the termination was also shared alongside the tweet, with Dynamics Mining proving that Compass has failed to remit payments at agreed-upon dates.

“For clarity, @compass_mining power consumption @Dynamics2k totaled $1.2 million and they only paid $415k and $250k initial power deposits. Compass claims that they gave money to @Dynamics2k but the money was used to build out their facilities,” Dynamics Mining said in another tweet hours after announcing the termination notification.

Keeping up with the obligations of running a mining farm is increasingly becoming a difficult ask for startups running mining and hosting services. With the growing cost of energy and the declining prices of Bitcoin (BTC), the profitability is just not so guaranteed and many miners have difficulty in paying their bills.

In order to stay afloat, quite a number of miners have revealed that they sold a huge chunk of their recently mined BTC to cushion the operating costs. 

Compass Mining Seeks Court Redress

As one of the biggest players in the crypto mining industry, Compass Mining may be seeking legal redress as threatened by the Chief Executive Officer Whit Gibbs who said he would “fight this battle in court, not on Twitter.”

In response, Dynamics Mining hit back at Gibbs saying all Compass mining had to do was “pay $250k for 3 months of power consumption. Since you don’t give your clients their Serial Numbers I couldn’t even help them. Twitter is the voice of your customer base, not the courtroom.”

While Compass Mining did not accept nor deny the claims from Dynamics, should the allegations be true, more logistics worry may be in the queue as relocating its mining operations in Maine will be an arduous task.