Sunday, July 21, 2024

Compass Mining loses hosting facilities after failing to pay power bill.

Compass Mining, a Bitcoin mining hardware and hosting company, lost its Maine-based hosting facilities after it failed to pay the required bills. Dynamics Mining terminated the hosting agreement saying that Compass has six late payments and three non-payments related to utility bills and hosting fees.

Dynamic tweeted that the power consumption bills totaled $1.2 million wherein Compass has only paid around $665,000. It highlighted that Compass said it has given the money required for the bills. But Dynamics said the money was used to build other facilities instead.

With the situation spinning out of control, Whit Gibbs – the CEO of Compass Mining – said he would take this battle to court. But a spokesperson from Dynamics pointed out that all Compass has to do is pay $250,000 for three months of power consumption. The spokesperson also said that Twitter is the voice of their customer base, not the courtroom. Compass Mining sells specialized cryptocurrency mining devices – Application Specific Integrated Circuit (ASIC). It comes with an option to be hosted in its facilities located across the US and Canada. According to its host agreement, Compass may rearrange, remove or relocate Customer Hardware without any liability to Compass.

Customers can waive their rights to seek remedies in Court. They can also be involved in Class Action lawsuits. Proceedings must be brought forward by each individual customer if they were to file a lawsuit against Compass. The overall crypto market has become a very challenging environment as Bitcoin and Ethereum continue to slide downward. Bitcoin mining profitability has dropped more than 75% from the market top.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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