Compass Mining loses its facilities after allegedly not paying its electricity bills

Compass Mining loses its facilities after allegedly not paying its electricity bills

Bitcoin (BTC) mining hardware and hosting company Compass Mining has lost one of its hosting facilities in Maine after the owner, Dynamics Mining, terminated the hosting agreement between the two, claiming that Compass had not paid the bills. required.

Late Sunday, Dynamics shared a letter on Twitter that it sent to Compass Mining stating that as of June 14, the hosting contract between the two parties is terminated. Dynamics claimed that Compass has six late payments and three non-payments related to utility bills and lodging fees.

In a follow-up tweet a few hours later on Monday, Dynamics claimed that the electricity bills amounted to USD 1.2 million, and that Compass had only paid about USD 665,000. He said that Compass claims to have provided the money required for the invoices, but Dynamics claimed that it was used to build other facilities instead.

Cointelegraph reached out to Dynamics Mining and Compass Mining for comment, but received no response from either as of press time.

The situation made Compass Mining CEO Whit Gibbs said he would “fight this battle in court, not on Twitter.”

But the individual responsible for the Dynamics account responded to Gibbs, saying that all Compass had to do “was pay $250,000 for three months of electricity” and that “Twitter is the voice of its customer base, not the court.”

Compass Mining sells application-specific integrated circuit (ASIC) miners, specialized cryptocurrency mining devices, that come with the option of being hosted at their facilities located in the United States and Canada. It is unknown what will happen to client miners located on the premises.

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Compass claims that in an emergency, you can “reorganize, remove or relocate customer hardware without any liability to Compass”, according to your hosting agreement.

The conditions also provide that customers “give up their rights to seek remedies in court” or to participate in any class action, and any proceedings must be paid by each individual customer if they were to file a lawsuit against Compass.

The situation comes as many cryptocurrency miners are facing a difficult market environment with the continued drop in the price of Bitcoin and rising energy costs.

In mid-June, when Bitcoin dipped below $24,000, the profitability of many of the older ASIC miners fell into the negative zone, with even some of the newer generation mining rigs nearing or exceeding their thresholds. disconnection from the asset price.

At the same time, with Bitcoin mining profitability falling more than 75% from the market high, the volume of BTC sent by miners to crypto exchanges reached a seven-month high on June 15. Several public companies that are engaged in Bitcoin mining sold 100% of their production for May, according to various reports.

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