Eden Prairie-based Compute North, which operates crypto-mining centers, has filed for bankruptcy.
The company filed for chapter 11 bankruptcy in Texas Thursday, Bloomberg reports. It cited the increasing cost of electricity and the lag time between building the centers and revenue generation.
Compute North owed as much as $500 million to more than 200 creditors, according to Yahoo! Finance. In addition to the bankruptcy filing, the company’s CEO Dave Perrill also stepped down.
Along with its Eden Prairie headquarters, Compute North also operates facilities in Texas, Nebraska and South Dakota.
In a filing, Compute North Chief Financial Officer Harold Coulby said the company had taken out up to $300 million from one lender to finance its Texas and Nebraska projects, according to CoinDesk.
“Facing the threat of ongoing degradation to the value of its business, including the potential termination of contracts that Compute North may be able to assign in a sale transaction, Compute North had no choice but to commence these Chapter 11 Cases in order to preserve and maximize the value of its assets,” he wrote.
Bitcoin, the most widely used cryptocurrency, has also become increasingly difficult to mine, CoinDesk reported earlier this month. The cryptocurrency’s mining difficulty recently reached an all-time high.