DCG's Foundry Digital buying Compute North facilities amid possible Genesis bankruptcy

DCG's Foundry Digital is buying two cryptocurrency mining facilities and other assets from Compute North. It has an option to acquire a third facility that is under development.

The deal comes as reports swirl that DCG’s Genesis, whose Global Capital suspended redemptions and new loan originations last week in the wake of FTX's collapse, may be filing for bankruptcy. The New York Times reported that it had hired investment bank Moelis & Company to explore options. 

"It has been our mission to strengthen the infrastructure of digital assets by supporting mining companies through all market cycles," Mike Colyer, CEO of Foundry, said. "Compute North has been our longtime partner and we are happy to have the opportunity to continue building upon the foundation they have laid over many years while growing the North American mining ecosystem."

The deal includes:

• Two turnkey sites located in South Dakota and Texas;
• Rights to completely buildout and operate Compute North's facility Nebraska;
• A fleet of mining machines;
• Intellectual property, including rights associated with MinerSentry, Compute North's proprietary cloud-based management and monitoring software for data centers of scale.

Since filing for bankruptcy in September, Compute North has sold off a number of other assets, including two mining facilities valued at $5 million and $1.55 million in containers.

Other companies in the industry are also struggling to stay afloat after months of seeing their margins squeezed while having to meet hefty debt obligations. Giant Core Scientific today emphasized its “substantial doubt” over whether it might be able to keep operations going.

With reporting assistance from Catarina Moura.