Digital asset mining and staking firm Foundry has agreed to purchase two “turnkey” bitcoin mining facilities from Compute North, a bitcoin miner that filed for Chapter 11 bankruptcy protection on Sept. 22, 2022. Foundry says the two data centers have a total power capacity of around 17 megawatts (MW), and the company also has the rights to purchase a third site from the troubled bitcoin mining business. Foundry’s acquisition announcement follows the speculation surrounding Genesis Global Capital, another business owned by the company’s parent firm Digital Currency Group.
DCG-Owned Foundry Digital Plans to Acquire 2 ‘Turnkey’ Facilities from Compute North, Foundry Has Option to Purchase a Third Site
On Tuesday, the mining and staking firm Foundry Digital announced it has plans to acquire two data centers from Compute North. The two “turnkey sites” are located in North Sioux City, SD, and Big Springs, TX. The sites will give Foundry 17 MW of operational capacity and “a fleet of mining machines owned by Compute North.” Additionally, Foundry also has the rights to acquire another site owned by Compute North located in Minden, NE.
Compute North filed for Chapter 11 bankruptcy protection on Sept. 22, 2022, as it joins a broad range of cryptocurrency firms that have filed for bankruptcy this year. Bitcoin mining operations that have made it this far are dealing with the difficulty at an all-time high and BTC prices below cost of production.
The Digital Currency Group (DCG) subsidiary Foundry also manages the world’s largest bitcoin mining pool, in terms of total hashrate, Foundry USA. With 62.12 exahash per second (EH/s), three-day statistics show the pool currently commands 24.20% of the Bitcoin network’s current 256.74 EH/s hashrate.
With All Eyes on DCG’s Genesis, Foundry Says It Plans to ‘Continue Building Upon the Foundation’ Built by Compute North
Foundry’s recent acquisition announcement comes at a time when eyes are fixated on Genesis Global Capital, a company owned by Foundry’s parent company Digital Currency Group. Genesis revealed on Nov. 16, 2022, that its lending unit would temporarily suspend withdrawals and new loan originations. Days later, a report from the New York Times (NYT) claims Genesis Global Capital was exploring restructuring services.
The NYT article detailed that Genesis Global Capital “hired the investment bank Moelis & Company to explore options including a potential bankruptcy, three people familiar with the situation said.” Despite the swirling speculation, reports from the Wall Street Journal and The Block indicate that DCG CEO, Barry Silbert, has reassured the company’s shareholders: “DCG will continue to be a leading builder of the industry.”
Foundry’s announcement also follows the mining and staking-focused company launching a new bitcoin mining hardware training program. Mike Colyer, the CEO of Foundry, further detailed that the mining and staking company looks forward to continuing what Compute North had previously built.
“It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles,” Colyer said. “Compute North has been our longtime partner and we are happy to have the opportunity to continue building upon the foundation they have laid over many years while growing the North American mining ecosystem.”
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