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Missed Power Bill Payments Force Compass Mining To Shut a Facility

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Compass Mining To Shut a Facility
Compass Mining To Shut a Facility

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Compass Mining, a provider of Bitcoin (BTC) mining gear and hosting, has ended up losing one of its Maine-based hosting locations after the owner of the facility, Dynamics Mining, canceled the ability to host agreement between the two parties, alleging that Compass had failed to pay its costs.

The owner of the facility, Dynamics Mining, turned to Twitter to announce the termination of its hosting relationship with Compass Mining, citing unpaid bills.

The hosting agreement between Dynamics and Compass Mining was canceled as of June 14th, according to a letter Dynamics tweeted late Sunday night. Dynamics asserts that Compass has made six outstanding payments and three non-payments for utility bills and hosting costs.

Twitter War

A few hours later, Dynamics claimed in a follow-up tweet that the power usage bills reached $1.2 million, but Compass had only paid $665,000. It stated that Compass claimed to have provided the necessary funds to pay the bills, but Dynamics claimed the funds were utilized to construct other facilities.

The extremely public nature of the matter prompted Compass Mining CEO Whit Gibbs to declare that the battle will be fought in court, not on Twitter. The tweet has already been removed.

The individual behind the Dynamics account, on the other hand, reacted to Gibbs by noting that Compass only required to pay $250,000 for three months of power consumption and that Twitter represents the view of your client base, not the judiciary.

A spokeswoman for Compass Mining stated that Dynamics Mining’s accusations are completely false and that the company will issue a comment shortly.

Severe Consequences for Compass

The resignations of Gibbs and Chief Financial Officer Jodie Fisher were announced by Compass on June 28.

They stated that Compass Mining was developed to simplify and expand mining acknowledging that several failures and disappointments have impeded progress toward this aim. Through this reorganization, the company’s sole objective is to restore the respect of its community members.

Paul Gosker, Chief Technology Officer, and Thomas Heller, Chief Mining Officer, were named as temporary Co-Presidents and CEOs. Compass stated it will immediately begin the hunt for a new CEO and CFO. It is unclear whether the resignations of Gibbs and Fishers are a direct consequence of the situation at Dynamics Mining.

Compass Mining supplies Application Specific Integrated Circuit (ASIC) miners, which are specialized hardware for mining cryptocurrencies, with the option to be hosted at its facilities in the United States and Canada. The final fate of the mining customers stationed at the plant is uncertain at this point of time.

As per its hosting agreement, Compass may alter, remove, or migrate Customer Hardware in the case of an emergency without incurring any obligation.

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