A bankruptcy court authorized Crusoe (a leading BTC mining firm) to purchase Compute North assets at a valuation of $1.55 million. The assets consist of eleven mining vessels. Even though other miners have difficulty making loan payments, Crusoe has bought two businesses in recent months.
Crusoe Energy Systems will pay about $1.55 million for eleven vessels sold by Compute North. Per the paperwork the firm recently submitted, the sale was authorized by a bankruptcy court in Texas’ Southern District.
According to the filing, Crusoe made an earlier deposit of $187K last month just before the deadline set aside by Compute North for bids. However, Compute North did not get any additional eligible bids asides from the Crusoe bid.
Crusoe Is On A Shopping Spree
Crusoe has embarked on a buying spree; it purchased its rival — Easter-Owens Electric Co, the top American Mining and electrical producer. Crusoe can do this as other businesses in the BTC mining sector struggle with solvency and are compelled to sell off their assets.
The startup based in Denver uses natural gas that is typically vented to power modular data centers. It successfully finished a $506 million Series C financing to fund the expansion of its mining business.
Compute North declared bankruptcy in September, citing crypto costs and high electricity prices. But it stated that the valuation of its assets and liabilities could be up to $500 million, but it’s not less than $100 million.
Additionally, it recently reached a $5 million agreement to sell off two mining operations to its previous backer Generate Capital.
Compute North Compensated Managers With Over $612K On Bankruptcy Day
A court document reveals that administrators at Compute North got $612,792.97 in compensation and incentives paid over 12 months prior to the day the business declared bankruptcy (September 22, 2022).
Executives earned hefty rewards despite the bankruptcy filing freezing disbursements to investors. Following the filing, the business compensated the former CEO —-Dave Perrill, and co-founder with $613,000 for benefits. and payroll
According to the filing, Jason Stokes (ex-Chief Legal Officer) received $325K, and former CFO (Tad Piper) obtained $541K despite leaving the company three months ago. In addition, Edward Drake Harvey III, the President, and CCO —- Kyle Wenzel each got about $505K.
The paper also lists several Compute North business deals that Perrill partially controlled. In the previous year, these businesses got payments totaling about $350K for renting office space and providing services.
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