Compass Mining, a US-based service that hosts Bitcoin miners for clients, recently announced that Whit Gibbs, the CEO, and Jodie Fisher, the CFO would be retiring.
In the statement, it was also stated that CTO Paul Gosker (CMO), and Chief Mining Officer (CMO), Thomas Heller would take over temporarily until a permanent solution can be found.
“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
According to the statement, their primary objective of making mining easier was compromised by multiple setbacks. ”
“We are aware that there have been many setbacks, disappointments that have detracted us from our goal. The company’s restructuring is aimed at regaining the trust of its stakeholders and the community as well as delivering our mission to provide best-in-class services for all size miners. These changes will be implemented to reach the next level for Compass Mining.
It is easy to assume that the above neutral language refers to the current bear markets that are causing many DeFi platforms to fail and crypto exchanges struggle to stay afloat. However, Compass’s current problems could be exacerbated by a variety of allegations that have been made.
Customer Support is cut off with a brief warning
DynamicsMining, a business partner of Compass, has updated. Compass clients reported that Compass’s Discord was also shut down after only one day’s notice.
Wonder why they did it?
— paul (@birdsrnotreal2) June 27, 2022
This information is not confirmed, but the official Discord invite link appears to be inoperative. The only way to contact the team is by phone or email.
DynamicsMining also stated that they tried to assist Compass’ customers with their control of their mining rigs. Dynamics cannot help Compass’ customers at the moment because the mining service provider did not notify them of the serial numbers.
Compass’ ToS, paragraph 3.4, states that Compass reserves the right “rearrange remove or relocate Customer Hardware without any responsibility to Compass.” Therefore, Compass clients have no reason to be concerned about the health of the miners at Dynamics’ Maine facility.
More than half a million unpaid bills
While Compass’ current dispute with Dynamics can’t be determined to be the cause, especially since they had to dispose of $30 million worth hardware managed by Russian crypto mining company Bitriver, it is likely that a sudden decision to end DynamicsMining’s business relationship played a major role. The legal costs that could be incurred by the split if it is not resolved amicably are also included.
DynamicsMining stated that Compass owes $1.2mln in electric bills. However, they have only paid $665k. Further alleged irregularities were also highlighted in the partnership’s termination. The promise of additional receipts is made. DynamicsMining will pursue legal action on breach of contract grounds unless an amicable settlement can be reached.
Marla Brooks – Financial Analysis
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