Compute North Holdings Inc., a data-center owner that houses bitcoin-mining rigs and blockchain companies, filed for bankruptcy protection after succumbing to a liquidity crisis driven by the collapse in cryptocurrency prices, rising costs for electricity and supply-chain issues.
The company, which manages data centers in Texas, South Dakota and Nebraska, filed for chapter 11 in the U.S. Bankruptcy Court in Houston on Thursday after having borrowed up to $300 million in project financing earlier this year.