Compass Bitcoin Mining Company Closed Due To Massive Electricity Bill
Dynamics Mining, which owns one such site, issued a notification today indicating that its “facility hosting agreement in Maine was terminated… for failure to pay power consumption charges.”
Nearly half of the alleged $1.2 million in charges had reportedly been settled over the last six months.
The facility is located in Maine, which has the highest electricity costs in North America. The expense could be a contributing cause to Compass Mining’s inability to pay. However, because the facility in question claims to be 100 percent renewable and carbon-neutral, local electricity costs may not be as relevant in this scenario.
It is still uncertain whether Compass Mining’s other facilities are affected by its failure to pay electricity prices. Customers’ Bitcoin miners face the same fate. According to the conditions of the hosting agreement with Compass Mining, “In the event of an emergency, as determined in Compass’ or Hosting Facility’s reasonable discretion, Compass and/or Hosting Facility may rearrange, remove, or relocate Customer Hardware without any liability to Compass.”
The hardware agreement also includes a class-action restriction, which means that if consumers want to sue Compass Mining, they must do it individually and at a high expense. Following the closure of Compass Mining, the Maine site has around 12MW of usable hashrate.
According to the website, at the end of a hosting contract, users can “have your miner transported directly to you.”
Miners with ASIC machines in Maine may need to organize transportation to get their equipment back unless Compass Mining and Dynamics Mining can reach an arrangement.Continue Reading