EDEN PRAIRIE, Minn. — An Eden Prairie-based cryptocurrency mining company, Compute North, has filed for bankruptcy.
The news comes as the multibillion-dollar cryptocurrency industry faces collapsing prices and lenders halting operations.
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In a statement, the company said the voluntary Chapter 11 proceedings were initiated last week in the United States Bankruptcy Court for the Southern District of Texas.
The filing shows that Compute North owes as much as $500 million to at least 200 creditors.
According to the company, the move provides the company “the opportunity to stabilize its business and implement a comprehensive restructuring process that will enable us to continue servicing our customers and partners and make the necessary investments to achieve our strategic objectives.”
Compute North’s website says the company provides “scalable, cost-effective digital infrastructure solutions for highly specialized computing needs. Driven by trusted leaders with deep experience in data centers, technology, and energy; the company is redefining how services are delivered for blockchain, cryptocurrency, and other distributed computing applications.”
The business has facilities in Nebraska, South Dakota and Texas.