Compass Mining disputes claims of an unpaid $1.2 million power bill and announces the resignation of its CEO and CFO.

October 1, 2022

Bitcoin Down on Monday


Compass Mining disputes claims of an unpaid $1.2 million power bill and announces the resignation of its CEO and CFO.

Both the CEO and CFO of Compass Mining, a hosting firm that provides managed mining services to Bitcoin (BTC) miners, have resigned. According to the business, it has had “many failures and disappointments” that have distracted from its objective. According to a statement from Compass, the current reorganisation will help it win back the confidence of its consumers and shareholders. To oversee Compass during the changeover phase, the business has selected its CTO Paul Gosker and chief mining officer Thomas Heller as interim CEOs.

Compass has officially denied charges that it neglected to pay Dynamics Mining, a subcontractor in charge of operating its mining site in Maine, a $1.2 million electricity bill, a day after announcing the resignations. According to a notice that was made public, Dynamics Mining terminated the two’s facility hosting contract in Maine earlier this week “for failing to pay power use expenses.” The charges sparked a community debate over Compass’ financial sustainability, and many people started to worry if miners whose ASIC machines were hosted by Dynamics would be able to get them back. However, Compass has denied the allegations, describing the company’s social media posts as “completely untrue.

Compass asserted that it appears Dynamics “misunderstood” its contractual duties while pointing out that it had fulfilled all of its commitments to Dynamics. Compass has already launched a complaint against the subcontractor and includes a request for speedy remedy to safeguard its clients and their interests, even though it is trying to settle the issue informally with Dynamics.

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