Great North Data, a Canada-based Bitcoin mining and AI algorithm processing center has shuttered and is filing for bankruptcy protection. The company has listed more than $13 million in liabilities against a meager $4.5 million in assets.
Of particular note, the company lists a number of Canadian governmental agencies as creditors. The listings coincide with the information that the Atlantic Canada Opportunities Agency (ACOA) had previously invested $500,000 in the company.
Great North Data Grants
The ACOA investment was apparently wholly unsecured. The agency is listed as a creditor for $281,675, however, other agencies had also invested, which had security connected with the company’s assets.
According to previous statements, Newfoundland and Labrador government’s Business Investment Corporation had invested $400,000. The company’s Bitcoin mining facility and land in Labrador were collateralized for the investment.
Beyond these substantial creditors, the company also lists the local power company, Newfoundland and Labrador Hydro, for $316,000, and the Business Development Bank of Canada for $225,000.
It seems these government creditors may end up eating most of the massive losses the company has posted. Much of these losses still remain unreported, since the agencies in question have refused to release further information because of client privilege.
Bitcoin Mining Losses and Gains
Mining operations face major challenges and changes in the coming months, particularly with the next Bitcoin halving quickly approaching. A number of miners have already capitulated, being forced to sell their BTC back onto the market as profits decline.
Other miners, however, have remained stable as the price of Bitcoin appears to have found support for now above the $7,000 level. Most miners who have capitulated are those who began mining after 2013. Great North Data falls into this category.
While the market continues on rocky footing, the state of the mining industry appears relatively stable. As the next halving approaches, there is much that remains to be seen about what happens with mining operations as we move into 2020.