BitNile displaces over 6,500 Bitcoin miners following Compute North’s bankruptcy.
Ault Alliance, a diversified holding company, announcement that its subsidiary, BitNile, is moving 6,572 Bitcoin miners from a hosting facility in Texas to its Michigan data center.
The decision to move the miners was made following Chapter 11 bankruptcy filing from Compute North, with whom BitNile had a hosting deal for 20 megawatts of power.
The deal was completed in August 2022, and the miners were moved to Compute North’s Wolf Hollow hosting facility in Texas. However, after the bankruptcy filing, BitNile determined that the facility was no longer economically viable and began moving equipment to its Michigan data center, which is expected to be completed by the end of February 2023.
“While this situation is very frustrating, we are going through the legal process with Compute North and have control of our equipment. We believe the decision to move our mining equipment allows us to best execute our future deployment plans,” said said Milton “Todd” Ault, III, the company’s executive chairman.
Along with this news, BitNile reiterated its previous report that it had entered into purchase agreements with Bitmain Technologies Limited for a total of 23,065 Bitcoin miners. The company expects to reach a mining throughput capacity of around 2.66 exahashes per second once all miners are fully deployed and operational.
However, the company notes that all projections are subject to various factors, including delivery and installation of Bitcoin miners, Bitcoin market price volatility, fluctuation in mining difficulty level, and Agora Digital Holdings’ capacity. Inc. to raise the necessary capital and build its power plant in Texas.
