Compass Mining lost a facility after failing to pay the power bill and the Owner Dynamics Mining announced on Twitter to be terminating the hosting agreement so let’s read more today in our latest cryptocurrency news.
BTC mining company Compass Mining lost one of its Maine-based facilities after owner Dynamics Mining ended the hosting agreement between them due to being unable to pay the required bills. Dynamics noted in a letter that it sent to Compass Mining that the hosting contract between the two was terminated and Dynamics alleged that Compass has six late payments and there were three non-payments related to the utility bills and hosting fees. In a new tweet on Monday, Dynamics alleged that the power consumption bills reached $1.2 million and Compass only paid $665,000. Compass claims to have given the money that was required to pay the bills but Dynamics alleged it was used to build other facilities.
Effective June 14th @compass_mining facility hosting agreement in Maine was terminated by @dynamics2k for failure to pay power consumption charges. 6 late payment and 3 non payments. @MiningScandals pic.twitter.com/cSfnWMmqTY
— DynamicsMining (@DynamicsMining) June 27, 2022
The public situation caused Compass Mining CEO Whit Gibbs to say that he will fight the battle in court but the individual behind Dynamics hit back at Gibbs and said that all they had to do was pay $250K for three months of power consumption. Compass Mining sells Application Specific integrated Circuit miners that are specialized crypto mining devices which some do come with an option to be hosted in the facilities located in Canada and the US but it is unknown what will happen to the miners located at the facility.
Compass stated that in an event of an emergency, it could remove or rearrange the Customer Hardware without any liability to Compass. The terms also see customers waive their rights to seek remedies in court or be involved in a Class Action lawsuit and the proceedings must be bought forward by each individual customer if they are filing a lawsuit against Compass. The situation came when most miners are facing challenges with the market environment and the continued price drops of BTC.
@compass_mining all you had to was pay $250k for 3 months of power consumption. Since you don't give your clients their Serial Numbers I couldn't even help them. Twitter is the voice of your customer base, not the courtroom. ✌🏾 https://t.co/BihbrpuAmk
— DynamicsMining (@DynamicsMining) June 27, 2022
BTC dropped below $20K and the profitability of many ASIC miners dropped in the negative as well. Around the same time, with BTC mining profitability dropping by 75% from the market top, the volume of BTC by miners to exchanges hit a seven-month high.
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