BTC mining company calculate North files for bankruptcy.

Bitcoin (BTC) mining hosting firm Compute North has filed for Chapter 11 bankruptcy, amid mounting pressure on the firm from the crypto winter and rising energy costs. The firm’s CEO, Dave Perrill, has stepped down but will remain on the board.

The company filed for Chapter 11 bankruptcy in U.S. Bankruptcy Court for the Southern District of Texas on Sept. 22, which is now pending before Judge David Jones.

Under a Chapter 11 filing, the company can still continue operating while it comes up with a plan to pay off creditors. The filing says Compute North owes between $500 million and 200 creditors, while its assets are said to be between $100 million and $500 million.

Compute North offers large scale crypto mining hosting services and facilities, hardware and BTC mining pool. It is one of the largest data center providers in the US and has big name partners in the BTC mining sector such as Compass Mining and Marathon Digital.

Both companies have issued statements via Twitter, indicating that at this stage, their business operations will continue as normal.

“Accounts North staff informed us today that the bankruptcy filing should not disrupt business operations. We will continue to monitor the situation and provide further updates as they become available. It is mentioned Compass mining.

In the year The performance of BTC in 2022 has had a significant impact on the mining sector this year, and in the context of Texas, rising energy costs and numerous power outages during intense heat waves did not help either.

Related: Maple Finance launches a $300 million loan pool for Bitcoin mining companies

Bloomberg business reporter David Pan said on Twitter that Compute North may have been affected by the months-long failure to generate revenue due to delays to a major mine in Texas.

“The Northern Giant 280MW mining facility in TX was supposed to operate transmitters in April but could not due to pending approvals. From then until finally being able to revive the machines this year, bitcoin prices went through several down cycles, fundraising opportunities dried up and major lenders backed away,” he wrote.

Compute North adds to the long list of crypto firms that have fallen victim to the crypto winter – or in some cases helped create it – including Voyager Digital, Three Arrows Capital, Celsius Network and BlockFi to name a few.