Canada-Based Crypto Mining Firm Great North Data Files for Bankruptcy
Canada-based cryptocurrency mining company Great North Data has submitted a bankruptcy filing, purportedly due to insolvency.
As the Canadian Broadcasting Corporation reported on Dec. 4, Great North Data — which operated crypto mining facilities in Labrador City and Happy Valley-Goose Bay — filed bankruptcy documents in late November, listing CA$13.2 million ($10 million) in liabilities, while having only CA$4.6 ($3.5 million) million in assets.
Liabilities to the state
With that, Great North Data reportedly owes CA$313,718 ($238,080) to the Newfoundland and Labrador government’s Business Investment Corporation, which the company secured for building, land, machinery and equipment.
The Atlantic Canada Opportunities Agency is reportedly an unsecured creditor for CA$281,675 ($213,868) and funded the company for CA$500,000 ($379,637) in 2015 in the form of an unconditionally repayable contribution.
At press time, the firm’s website is not functional and Cointelegraph has been unable to reach Great North Data on LinkedIn. The firm also has no phone number listed.
The industry has become increasingly challenging for miners, with other firms like the former Washington-based top-five crypto mining firm Giga Watt closing down in January, claiming that it was “insolvent and unable to pay its debts when due.”
In October, BCause Mining, a Bitcoin (BTC) mining operation in Virginia Beach in the United States, was ordered to liquidate its assets, shut down its operations and lay off its 27 full-time and four part-time workers, following bankruptcy documents filed earlier this year.
Meanwhile, mining firm Bitfarms is still expanding its operations despite complaints of the residents of the city of Sherbrooke, Quebec. Bitfarms reportedly manages five mining operations spread across the province to take advantage of cheap local hydropower, while residents living near the site are complaining about the allegedly intolerable sound and vibrations originating from the facility.