Bitcoin Mining Firm, Great North Data, Backed by Canadian Govt Files for Bankruptcy
The Canadian Great North Data firm that used to run Bitcoin (BTC) mining and some AI data processing centers have recently filed for bankruptcy.
The bankruptcy filings from late November are saying Great North Data only has CAD 4.6 million, which is about $3.5 million in assets, owing creditors not less than CAD 13.2 million or $10 million. With centers in Happy Valley-Goose Bay and Labrador City, in the Newfoundland and Labrador province, the company was backed by provincial and federal governments.
Great North Data Was Funded by ACOA
The firm owes CAD 281,675 to the Atlantic Canada Opportunities (ACOA) governmental agency. ACOA is looking to give businesses in the Canadian Atlantic region opportunities to develop economically and funded Great North Data with CAD 500,000 in 2015, the agreement being that money was to be repaid. ACOA reported that it has contacted Great North Data and is following along on how its bankruptcy is going.
The Firm Also Owes Other Governmental Agencies
Great North Data also owes the Business Investment Corporation of Newfoundland and Labrador province government CAD 313,718, having the funds it received from this corporation tied up in assets like building, equipment and land. The loan was CAD 420, 000, reports are saying. More than this, it has another CAD 420,000 power bill to pay to the Newfoundland and Labrador Hydro.
Bankruptcy Caused by Mining Difficulties and Bitcoin’s Price Going Down
According to reports, Great North Data didn’t give any reasons as to why it’s collapsing, but it has admitted it had difficulties with mining, also as a result of Bitcoin’s prices. However, the same challenges didn’t stop Whinstone US to recently start building the biggest Bitcoin mining center in partnership with GMO Internet, in Texas.