Unable To Pay For Electricity, Compass Mining Bitcoin Mining Company Sells ASIC Machines

Bitcoin mining in the United States. (Coingape)

JAKARTA – Compass Mining is a Bitcoin (BTC) hosting company that offers managed mining services to Bitcoin miners. Customers can purchase ASIC miners from the Kompas website and install them in one of several locations.

One of the owners of the mining facility, Dynamics Mining, stated that the agreement on hosting the facility in Maine had been terminated. This was due to “failure to pay for power consumption” estimated at US$1.2 million of which more than half had been paid over the past 6 months.

The facility is located in Maine, the state with the highest power consumption in North America. These expenses could be a factor in Compass Mining's inability to pay. However, the facility in question claims to be 100% renewable and carbon neutral so it is possible that local electricity costs do not apply in this case.

When contacted by CryptoSlate, Compass Mining replied that they could not comment at this time. A Twitter user reported that Discord Compass Mining's servers had been disabled following the news.

Whether other Compass Mining facilities are affected by its inability to pay energy costs is currently unknown. So is the fate of Bitcoin mining customers.

“In the event of an emergency, as determined in the reasonable discretion of Compass or the Hosting Facility, Compass and/or the Hosting Facility may reset, delete or relocate Customer Hardware without any liability to Compass,” reads the announcement from the BTC mining hosting company.

The hardware agreement also contains a class-action clause which means that if a customer wishes to file a lawsuit against Compass Mining, they must do so individually at large individual costs. There was approximately 12MW of hashrate available at the Maine facility after the closure of Compass Mining.

At the end of the hosting term, the customer has the option to “ship your miner straight to you” according to the website.

Miners who have ASIC machines located in Maine may now need to arrange shipping to get their equipment back unless an agreement can be made between Compass Mining and Dynamics Mining.