Foundry USA, a major cryptocurrency mining company, is getting a bigger piece of the market.
Foundry USA is getting bigger.
Foundry Digital, a division of the US cryptocurrency conglomerate DCG, said today that it will buy the facilities of the US mining company Compute North, which is filing for bankruptcy.
The new purchase also shows that the DCG Group has a lot of money. This comes at a time when worries are growing about another DCG subsidiary, Genesis Capital, which runs a lending business and is having trouble getting money.
Foundry Digital, a division of DCG, runs Foundry USA, the largest mining pool in the United States. At the time of this writing, BTC.com says that Foundry USA has the largest share (24.4% of the global hashrate) of bitcoin mining.
According to the news release, Compute North will sell two facilities for mining cryptocurrency to Foundry Digital. You also have the option to buy a third building that is still being built. Here are some details of the contract.
- There are two mines in Texas and South Dakota.
- right to take over and run facilities in Nebraska that are still being built.
- mining machine set
- Compute North’s Intellectual Property is One of a Kind
In January 2021, Foundry Digital and Compute North announced that they would work together to give companies in North America an institutional-grade solution that is ready to go for mining Bitcoin.
In September 2022, Compute North filed for protection under Chapter 11 (Chapter 11). The total debt is $500 million, and there are about 200 creditors (about 70 billion yen).
Foundry Digital CEO Mike Collier said in a press release that the company’s goal is to improve the infrastructure of its digital assets. By buying Compute North’s building, he hopes to make that goal stronger.
Compute North has been our partner for a long time and has helped build the North American mining ecosystem over the years. I am glad to be able to keep going with this.
In 2022, Bitcoin miners will make less money. This is called “Crypto Winter. As miners’ cash flow gets worse, operators who haven’t taken the right steps to protect themselves are being weeded out.
Genesis’ financial problems
Genesis Global Capital (Genesis Capital), a division of DCG that lets institutional investors borrow cryptocurrency, stopped redemptions (and withdrawals) and new loan originations on November 16.
Genesis Capital is trying to get $500 million in cash on hand because it seems to be facing a liquidity crisis after the collapse of the cryptocurrency exchange FTX, Bloomberg reported Tuesday, citing people with knowledge of the situation. reported.
Genesis Capital is also not planning to file for bankruptcy right away, and the company is still looking for a solution. In order to raise money, it is said that the parent company, DCG, has no plans to sell any of its venture investments or its subsidiary, Grayscale.