Great North Data, the company that was involved in bitcoin mining and supervised the data centers of artificial intelligence in Canada, declared bankruptcy.
According to the statement the company made in late November, the company’s assets amount to only $4.6 million canadian dollars (US $3.5 million), and debt to creditors is $13.2 million canadian dollars (US $10 million), reports CBC News.
With centers in the cities of Labrador and happy valley-Us Bay (Happy Valley-Goose Bay), Newfoundland and Labrador, Great North Data received financial support for their businesses from the Federal and provincial governments.
In the list of unsecured creditors, the Agency Atlantic Canada (ACOA), with a debt of $281 675. This canadian government Agency was aimed at creating opportunities for economic growth in the canadian Atlantic region.
ACOA funded at $500,000 in 2015 – money that must be repaid on the transaction. The Agency told CBC News that it “is in contact with the client and closely monitors all events” in relation to bankruptcy.
Great North Data is also owed $313 718 the Corporation’s investment in the business of the provincial government of Newfoundland and Labrador. This funding is associated with the Great North Data assets including building, land and equipment and arises from a loan in the amount of $420 000, according to the report.
In addition, Great North Data hangs a large electricity bill, which is yet to pay the power company “Newfoundland and Labrador Hydro” is called a debt in the amount of $316 477.
Specific reasons for the collapse of the company in the statement is not specified, but the bankruptcy occurred on the background of aggravation of the situation with mining and the price drop of bitcoin.
Despite this disappointing news, some big players still come on the market. Recently, the developer of data center Whinstone US began the construction of probably the world’s largest center of mining bitcoin in Texas, in partnership with GMO Internet.