The Compass Mining saga: A timeline of events so far


Over the last few days, Compass Mining has found itself in the news for all the wrong reasons. Earlier this month, the firm lost one of its mining centres in Maine, USA, after the owner of the facility, Dynamics Mining, terminated the agreement alleging that Compass had failed to pay its power bills.

This was followed by a very public war of words between the two companies. Allegations flew thick and fast over Twitter, and it even led to the resignation of some senior management. But went wrong, and why are the two firms at loggerheads with each other? Well, let’s find out.

What is Compass Mining, and how does it relate to Dynamic Mining?

Compass is a Bitcoin mining and hosting firm based out of Austin, Texas. It hosts mining machines from individual clients. This means you can buy a mining rig and store it at one of their facilities. You can then join a mining pool through Compass and enjoy a steady revenue stream. Compass allows you to mine Bitcoin without worrying about space constraints at home or sky-high power bills.

On the other hand, Dynamics Mining is one of Compass Mining’s hosting providers. It offers 100 percent renewable energy mining facilities in Brunswick, ME. It owns the property that Compass Mining was operating out of in Maine and provides it with a power supply.

The termination of the Maine facility

Now that we know about the two companies and their relationship, we can look at the series of events that transpired between them. According to a tweet, Dynamic officially terminated its agreement to host Compass Mining’s facility due to the latter’s failure to meet the stipulated payment terms.

Dynamic followed up with another tweet a few hours later alleging that Compass Mining had power consumption bills amounting to $1.2 million, of which it had only paid around $665,000.

However, one week later, public records show that Compass filed lawsuit against Dynamics in a bid to regain access to mining hardware stuck in the Maine facility. As per this reported complaint, Compass alleged that Dynamics cut off access to the Maine facility, effectively holding equipment worth nearly $4.5 million hostage.

Compass Mining’s CEO and CFO resign

On June 27, Whit Gibbs, CEO of Compass, replied to Dynamic Mining’s tweets saying the firm would “fight this battle in court, not on Twitter.” However, the post was later deleted. And what’s even stranger is that, the very next day, Compass Mining published a blog announcing that Whitt had resigned along with the CFO of the company, Jodie Fisher.

“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. These changes are being implemented to achieve the next level of growth for Compass Mining,” read the blog post.

When asked about the resignations, Will Foxley, director of content at Compass, said, “It’s not our place to comment on that.” He also said it “was a decision by them, and that was their choice.”

Compass Mining refutes Dynamic Mining’s allegations

Finally, on June 29, Compass Mining published another blog, outright denying the allegations made by Dynamic Mining. “Many of Dynamics’s statements on social media are completely incorrect, lack any factual support and create further damage to Compass,” read the blog. As for the way forward, the company believes that the lawsuit is “the proper forum to resolve any disputes, and that the court will vindicate Compass’s position”.



Read More: The Compass Mining saga: A timeline of events so far

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments