After several months of battling local complaints about its operation, noise levels, and lack of job creation, Labrador City-based cryptocurrency mining firm Great North Data has shut down. The company hosted bitcoin mining operations and processed artificial intelligence algorithms at facilities in Labrador City and Happy Valley-Goose Bay employing 25 people.
CBC News reported that when Great North Data only has CA$4.6 million (US$3.49 million) in assets but owes creditors CA$13.2 million (US$10 million) when it filed for bankruptcy in late November. The mining firm was backed by federal and provincial government agencies, leaving taxpayers on the hook for its failures.
The Atlantic Canada Opportunities Agency (ACOA) loaned the firm CA$500,000 (US$379,319) in 2015 and another CA$420,000 (US$318,628) the following year. Documents list the agency as an unsecured creditor for CA$281,675 (US$213,689). In an emailed statement to CBC News, officials at the agency “are in contact with the client and are closely following all developments” involving the company.
Great North Data owes CA$313,718 (US$237,998) to the Newfoundland and Labrador government’s Business Investment Corporation. That amount is secured by the mining company’s building and land in Labrador City, along with machinery and equipment per the CBC News report. Officials haven’t yet provided additional information.
Great North Data leaves a large unpaid power bill with Newfoundland and Labrador Hydro listed as an unsecured creditor owed CA$316,477 (US$240,091). The Business Development Bank of Canada, a federal crown corporation, is owed CA$225,000 (US$170,693). The company’s website is now down, and no specific reasons were provided for the company’s downfall.
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