Generate Capital Is Buying Two Mining Facilities From Compute North

According to Tuesday’s bankruptcy filings, Generate Capital is purchasing bitcoin mining hosting provider Compute North’s share in two mega-mining facilities for $5 million.

Compute North did not receive any other qualified offers for the assets in the run-up to the sale, therefore, the auction was canceled, and the agreement with Generate Capital was finalized.

Generate Capital has no plans for a merger or reorganization due to the transaction. Other-party assets used at the sites but held by third parties are not covered by the agreement.

New documents in Compute North’s bankruptcy proceedings suggest a solution has been struck, with counsel issuing a proposed order to sell its share in the mining operations in Wolf Hollow, Texas, and Kearney, Nebraska.

Today, a United States Bankruptcy Judge in the Southern District of Texas, Houston Division, signed an order allowing the transaction. As part of the deal, Generate will undertake the liabilities and duties connected with the locations and their equipment.

According to the acquisition agreement, the lender was the sole bidder for CN Pledgor’s equity in CN Borrower, and the transaction was allowed by the court.

Coulby alleged that Generate Capital asserted several technical events of default in July to seize Compute North assets, prompting the miner’s chapter 11 bankruptcy.

The lender was a major source of capital for Compute North as it opened new facilities, such as the Wolf Hollow mining plant. In February of this year, it agreed to give Compute North up to $300 million to cover upfront expenditures and project development.

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