BitNile displaced 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, moved 6,572 Bitcoin miners from a hosting facility in Texas to a Michigan data center.
The decision to move the miners was made as a result of the Chapter 11 bankruptcy filed by Compute North, which BitNile has entered into a hosting agreement for 20 megawatts of power.
The agreement was made in August 2022 and the miners were moved to the Wolf Hollow Compute North hosting facility in Texas. However, after filing for bankruptcy, BitNile determined that the facility was no longer economically viable and began moving the equipment to a Michigan data center, which is expected to be completed by the end of February 2023.
“Although this situation is very frustrating, we are in the process of legal proceedings with Compute North and control of our equipment. We believe that the decision to move our mining equipment provides us with the ability to execute the best future deployment plan,” said Milton “Todd” Ault, III, chairman company executive.
Along with this news, BitNile stated in previous reports that it has signed a purchase agreement 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 miners are completed and operational.
However, the company notes that all projections are subject to various factors, including the delivery and installation of Bitcoin miners, volatility in the Bitcoin market price, fluctuations in the level of mining difficulty, and the ability of Agora Digital Holdings Inc. necessary capital and building a power facility in Texas.