Two top executives of Compass Mining, a Bitcoin Miner, recently resigned. Now, Compass’ energy partner, Dynamics Mining, is making allegations of a breach of trust.
Compass Mining has come out to deny these allegations.
Dynamic Allegations a Cock and Bull Story
Dynamics Mining is a 100% renewable energy manufacturer. It offers its power services to a host of proof-of-work (PoW) mining firms in the US. The clean energy producer recently posted on Twitter that Compass Mining was owing $1.2 million for its services. The firm stated that out of the debt, Compass Mining has only made two initial power deposits of $415,000 and $250,000. According to Dynamics, when they contacted Compass about the balance of $535,000, they claimed to have completed their financial obligations with the company.
For clarity @compass_mining power consumption @Dynamics2k totaled $1.2 million and they only paid $415k and $250k initial power deposits. Compass claims that they gave money to @Dynamics2k but the money was used to build out their facilities. #truth pic.twitter.com/9esvuCFulO
— DynamicsMining (@DynamicsMining) June 27, 2022
Compass Mining has come out to debunk this narrative in a June 29 blog post. They said that Dynamics Mining’s statements on its social media pages were incorrect and lacked any factual backing. The Bitcoin miner stated that this hostile stance by its energy partner would only hurt the well-being of the already struggling mining firm. Compass Mining reiterated that the company was not owing Dynamics, with respect to the agreements they signed.
The embattled company noted that Dynamics accounts for about 1% of its mining capacity and that its facilities in Maine, USA were not defaulting to Dynamics Mining.
Additionally, Compass Mining stated that they are pursuing a legal recourse and are working to resolve the matter privately. The company also announced that it would be pursuing an expedited relief in order to protect its interests and its customers.
Murky Waters Stirred in Compass
The current standoff with its energy partner has begun to unravel a number of issues within Compass, one of the best Bitcoin mining sites. In the past week, principal founder and CEO Whitney “Whit” Gibbs and Chief Financial Officer (CFO) Jodie Fisher announced their departure from the company.
The company has since released a statement to the effect that the move was based on restructuring. Compass claimed to be working on restoring the goodwill with its stakeholders and community. Additionally, their motive is to deliver best-in-class mining services for miners of all sizes. The company pointed out that it has endured multiple setbacks and disappointments, is working on these key lapses, and is focusing on its objectives.
"Through this restructuring, the company is wholly focused on regaining the goodwill of our stakeholders and the community, as well as delivering on our mission of providing best-in-class service for miners of all sizes."https://t.co/wWcTcz8m9y
— Compass Mining (@compass_mining) June 28, 2022
Dynamics Mining has terminated its contract agreement with Compass Mining effective June 14 and has also announced that its decision was based on six late payments and three non-payments.
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
Bitcoin Mining Grows in the US
Bitcoin mining is a highly complex process that requires miners or nodes to compete in solving mathematical puzzles. This usually requires a lot of energy and sophisticated hardware devices. To increase chances of recording success, Bitcoin miners are known to pool their resources into one common umbrella or mining firm.
In the past year, Bitcoin mining has slowly evolved across the globe. Prior to the crackdown by Chinese authorities, the Asian nation accounted for more than 50% of all Bitcoins mined in the world. The United States has since picked up the baton left by China and currently records over 100 exahashes per second (Eh/s) which represents a spike of over 30.79% from its 2021 figure.
Compass Mining’s role in facilitating an accessible Bitcoin mining experience is crucial to the continued decentralised operations of the foremost crypto asset. Bitcoin has stumbled price-wise and has shed two-third of its November 2021 high value of $69k. However, the digital asset is still in demand. Institutional investors like MicroStrategy continue to pile up on their BTC holdings.
Compass Mining’s spat with Dynamic Mining could lead to a 1% drop of its service capacity to its customers and impact the global Bitcoin network. The company is hoping for a turn in fortunes and restoration of its operations soon.
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