BitNile is relocating more than 6,500 Bitcoin miners as a result of Compute North’s bankruptcy.
Ault Alliance, a diversified holding company, announced that its subsidiary, BitNile, is moving 6,572 Bitcoin miners from a hosting facility in Texas to its Michigan data center.
The decision to move the miners was made as a result of the Chapter 11 bankruptcy filing of Compute North, whom BitNile had entered into a hosting agreement with for 20 megawatts of power.
The agreement was made in August 2022 and the miners were moved to Compute North’s Wolf Hollow hosting facility in Texas. However, after the bankruptcy filing, BitNile determined the facility was no longer economically viable and began moving the equipment to its Michigan data center, which is expected to be completed by the end of February 2023.
“Although this situation is very frustrating, we are moving through the legal process with Compute North and have control over our equipment. We believe the decision to relocate our mining equipment provides us the ability to best execute our future deployment plans,” said Milton “Todd” Ault, III, the company’s executive chairman.
Along with this news, BitNile reiterated its previous report of having entered into purchase agreements with Bitmain Technologies Limited for a total of 23,065 Bitcoin miners. The company expects to achieve a mining production capacity of approximately 2.66 exahashes per second once all the miners are fully deployed and operational.
However, the company notes that all projections are subject to various factors, including the delivery and installation of Bitcoin miners, the volatility in Bitcoin market price, the fluctuation in the mining difficulty level, and the ability of Agora Digital Holdings Inc. to raise the necessary capital and build out its power facility in Texas.