Following the crash in the price of Bitcoin, and other cryptocurrencies, several companies and platforms have gone bankrupt due to losses.
Compute North, one of the largest companies in the world in the field of Bitcoin mining, filed for bankruptcy last week, according to various specialized media such as The Wall Street Journal and Bloomberg.
The company, dedicated to providing services related to the cryptoactive, including the data center for the blockchain in which it operates, decided to adhere to Chapter 11 of the United States Bankruptcy Law, which allows companies to reorganize financially under the supervision of the US court.
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In this sense, the Bitcoin mining center would be one more victim left by the so-called “crypto winter”, that is, the bearish period that the cryptocurrency market has been going through for a few months.
According to the US media report, the fall in the price of the asset itself has caused the mining activity to lose profitability, especially in a context of rises in the cost of electricity and global inflation.
Likewise, Yahoo Finance reported that the decisions of Generate Lending, a Compute North lending company, influenced the financial situation of the mining center.
Specifically, according to the portal, Generate would have taken control of some Compute North assets after it did not meet some technical requirements that were established when both companies signed a loan agreement.
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However, a lawyer consulted by the same medium clarified that Generate Lending did not directly cause the bankruptcy of the Bitcoin mining company, although it did influence accelerating the situation.
Since last May, the month in which most cryptocurrencies in the world began to collapse, several companies have faced serious losses of their capital and, some, like the Celsius platform, have also declared bankruptcy.