According to bankruptcy filings Tuesday, lending firm Generate Capital is buying Compute North’s stake in two mega mining facilities (a 300-megawatt (MW) facility in Wolf Hollow, Texas, and a 100-MW facility in Kearny, Nebraska). ). ) for $5 million.

A US bankruptcy judge in the Southern District of Texas signed the order approving the sale of Compute North’s interest in the two mining facilities.

Under the purchase agreement, Generate Capital was the sole bidder for Compute North’s equity, and the court approved the sale on Tuesday.

As part of the sale, Generate Capital is buying out the Compute North sites for $5 million and will assume the liabilities and obligations to customers who host their machines on the sites.

In late September, Compute North became the latest victim of the bear market and filed for Chapter 11 bankruptcy, saying it cannot meet debt obligations worth up to $500 million.

In its bankruptcy filing, Compute North blamed its financial troubles on this year’s bear market, the rising cost of electricity in the US and the time lag between building two new data centers and profitability.

The biggest hit came from a loan the Bitcoin miner took out from Generate Capital. In February, Generate Capital loaned Compute North $300 million to finance the development of two sites in Texas and Nebraska.

While Compute North was able to refund some of the funds, about a third was still outstanding due to defaults.

In July, in an attempt to recoup its money, Generate Capital took over some of Compute North’s assets, including two of the sites its funding had earmarked for construction purposes.

Generate Capital’s move to take control of Compute North’s assets triggered the Bitcoin miner’s Chapter 11 bankruptcy in late September.

Filing for Chapter 11 bankruptcy protected the Bitcoin miner from his creditors and allowed him to continue his operations. This has given him enough breathing room to find a way to pay his creditors without having to be auctioned off.

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