Compute North collapse — what creditors were owed and recovered (2022)

Compute North Holdings was a Minnesota-based operator of data centres that hosted mining rigs for bitcoin miners and blockchain companies. It filed for Chapter 11 in the Southern District of Texas on 22 September 2022, after the 2022 price collapse and rising energy costs made its debt-funded buildout unsustainable. Customers had prepaid hosting deposits and had machines installed at its sites; those obligations stopped being met at filing.

The petition estimated both assets and liabilities in the US$100 million to US$500 million range, and headlines at the time reported the company owing as much as US$500 million to at least 200 creditors. Itemised filings show a narrower picture: about US$128.3 million of long-term debt, including US$99.8 million owed to NextEra's TZ Capital, US$21 million on an unsecured promissory note to Marathon Digital and US$7.47 million of equipment financing to Foundry Digital, plus about US$18.4 million to general unsecured creditors, roughly US$146.7 million in total.

Most of the debt was owed to lenders and equipment financiers rather than retail customers. The largest customer exposure was Marathon Digital, which disclosed about US$50 million of operating deposits tied to the King Mountain and Wolf Hollow sites and recorded impairments of US$39 million and a further US$16.6 million. The court confirmed the plan on 16 February 2023 after Marathon settled at a fixed US$40 million unsecured claim; the estate was renamed Mining Project Wind Down Holdings.