Compass Mining, a prominent Bitcoin mining company, announced today that both their CEO and CFO will be stepping down. In a statement released by the company, they announced that their “Board of Directors has accepted the resignation of Chief Executive Officer Whit Gibbs and Chief Finance Officer Jodie Fisher.” The pair will be replaced by their CTO and Chief Mining Officer immediately, and the company will begin searching for permanent replacements.
Compass Mining Allegedly Didn’t Pay for Electricity Usage
On June 14th, 2022 the miner hosting agreement between Compass and Dynamics2K was allegedly canceled because they “failed to pay the utility bill due” for electricity. Evidence has emerged alleging that Compass sued the hosting company for holding its Bitcoin mining machines hostage at the Maine facility. Compass has since posted an official response denying the allegations of wrongdoing by Dynamic.
Disgruntled Bitcoin Plebs Allege Further Wrongdoing
Bitcoin Plebs with direct lines of communication to Dynamics2K have said that the Bitcoin mining company failing to pay electrical bills is true. They also allege that Compass broke into one data center to get back miners by force, but were stopped when they tried to do so at a second facility.
US Sanctions on Russia Impacting Miners
Following the Russia-Ukraine war and the resulting US sanctions, Compass was forced to discontinue its hosting operations in Russia. The company was hopeful that they would be able to recuperate costs and equipment in Russia according to reports, but some customers have indicated that this matter has not been resolved as of June 2022.
Compass Discussed the Lawsuit on Twitter
Content Director at Compass, Will Foxley, joined twitter spaces to talk with the community about the lawsuit. No record of the audio can be found on their Twitter or YouTube, but @Coincologist alleges that the talk only lasted 5 minutes and that the Bitcoin mining company is potentially restructuring into a “media company.”
What’s Next for Compass and the Bitcoin Mining Industry?
Although some of this information is anecdotal in nature, the allegations and lawsuits between Compass Mining and Dynamics2K have been verified by the company. Restructuring of their management is underway, and the loss of equipment/hosting in Russia appears to be a persistent problem for Compass. It’s highly likely that problems of this nature are not limited to Compass as the price of Bitcoin falls. Publicly listed miners are facing varying degrees of liquidity issues ahead of them, which could lead to forced selling and lawsuits.
It is important to state that Bitcoin is a merit based economy, and there should always be a way to come back from setbacks if you have a low time preference. I implore all parties involved to operate with honor, be truthful upfront, and to find agreements that can be mutually beneficial in the long run.
