Canadian Bitcoin Miner Goes Bankrupt Indebted To Taxpayers
Canada-based Bitcoin (BTC) miner and AI data processor Great North Data has filed for insolvency, leaving behind millions of dollars in debt. In an unusual situation for a cryptocurrency miner, these include hundreds of thousands of dollars the company owes to Canadian taxpayers after obtaining funds from a number of federal and provincial entities.
Great North Data operated mining operations and processed artificial intelligence algorithms at its facilities in Labrador City and Happy Valley-Goose Bay, both located in Canada’s Newfoundland and Labrador province. The company listed CAD 13.2 million (USD 10 million) in liabilities against some CAD 4.6 million in assets, according to the company’s bankruptcy documents obtained by Canadian broadcaster CBC.
Among others, the business owes the Newfoundland and Labrador government’s Business Investment Corporation a total of CAD 313,718, secured by the bankrupt company’s building and land in Labrador City, as well as IT equipment and machinery.
In contrast, the Atlantic Canada Opportunities Agency (ACOA), a federal government entity from which Great North Data obtained CAD 500,000 in 2015 as an unconditionally repayable contribution, is an unsecured creditor for a total of CAD 281,675. The miner also secured some CAD 420,000 from the Newfoundland and Labrador provincial authorities between January and August 2016.
Other unsecured creditors of the business include Newfoundland and Labrador Hydro to which Great North Data owes CAD 316,477, and the Business Development Bank of Canada to which the miner is indebted for CAD 225,000.
ACOA representatives declined to provide more details on the status of repayments and related issues, referring to client confidentiality terms, but said they were “in contact with the client and are closely following all developments” involving Great North Data.
As of 6 December, Great North Data’s website was down. The latest available tweet from the company’s official account, posted close to a year ago, wished “everyone a Happy Holiday and joyful New Year!”