Canada’s Great North Data Files for Bankruptcy Owing Millions

Great North Data, a company that ran bitcoin mining and AI processing data centers in Canada, has filed for bankruptcy.

As per bankruptcy filings late in November, the company has only 4.6 million Canadian dollars (around US$3.5 million) in assets, yet owes creditors CA$13.2 million (around US$10 million), CBC News reported on December 4.

Having run centers in Labrador City and Happy Valley-Goose Bay, both in the territory of Newfoundland and Labrador, Great North Data had gotten business support from provincial and federal governments.

Atlantic Canada Opportunities Agency (ACOA) is recorded as an unsecured creditor owed CA$281,675. The Canadian government office intends to make opportunities for economic development in the Canadian Atlantic locale.

The ACOA had financed the company to the tune of CA$500,000 in 2015—money that should have been reimbursed under an understanding. The organization disclosed to CBC News that it is “in contact with the client and are closely following all developments” regarding the bankruptcy.

The data processor likewise owes CA$313,718 to the Business Investment Corporation of the provincial Newfoundland and Labrador government. That funding is tied up in Great North Data assets, including land, building, and equipment, and emerges from a loan of CA$420,000, as per the report.

Also, Great North Data leaves a huge power bill still to be paid, with Newfoundland and Labrador Hydro recorded as an unsecured creditor owed CA$316,477.

No particular reasons are given for the firm’s breakdown in the report, but the bankruptcy came in the midst of record mining difficulty and falling bitcoin costs.

Still, a few players are as yet entering the game, with data center developer Whinstone US recently beginning development of what will probably be the world’s greatest bitcoin mining center in Texas, in collaboration with GMO Internet.