State-Backed Mining Company Goes Bankrupt

December 5, 2019, by Marko Vidrih on ALTCOIN MAGAZINE

Great North Data, a Bitcoin mining company in Canada, has initiated bankruptcy proceedings, reports CBC News.

According to documents issued at the end of November, the company has assets totaling $3.5 million with a total debt to creditors, including federal and municipal authorities, of $10 million.

Among the unsecured creditors Great North Data is the Atlantic Canada Regional Development Authority (ACOA), to which the company owes $213,000. In 2015, it provided the miner with $380,000 and, under the terms of the agreement, was supposed to get this money back. Later on Great North Data received another $319,000 from the province between January and August 2016.

In addition, the company owes $238,000 to the Business Investment Corporation, which is managed by the authorities in Newfoundland and Labrador. They funded Great North Data for $318,000, giving them money to build and purchase equipment.

On top of that, the company has a large unpaid electricity bill. The total debt to the hydropower plants of Newfoundland and Labrador is $240,000.

What led to the bankruptcy of Great North Data, the media did not specify. The company’s website is now offline. According to the archive version, it was founded in 2013 and has evolved “from a basement startup to a major provider of processing capacity in Atlantic Canada.”

Author: Marko Vidrih