Stephanie Douse 
Dynamics Mining shared a letter ending its hosting relationship with Compass Mining, citing unpaid costs as the reason for the termination
Compass Mining, a provider of Bitcoin (BTC) mining hardware and hosting, has lost one of its Maine-based hosting facilities after the building’s owner, Dynamics Mining, canceled the two parties’ hosting agreement on the grounds that Compass had not paid the necessary expenses.
The hosting agreement between Dynamics and Compass Mining was canceled as of June 14th, according to a letter Dynamics posted on Twitter late on Sunday. In relation to utility bills and hosting fees, Dynamics claimed that Compass has made six late payments and three non-payments.
A few hours later, on Monday, Dynamics claimed that Compass had only paid about $660,000 of the $1.2 million in power consumption bills. Compass allegedly provided the funds needed to pay the bills, but Dynamics maintains they were used to construct other facilities.
By the time of publication, neither Dynamics Mining nor Compass Mining had responded to requests for comment.
Whit Gibbs, CEO of Compass Mining, declared that the company will “fight this war in court, not on Twitter” due to the highly publicized circumstance.
Twitter is the voice of your customer base, not the courts, the person behind the Dynamics account shot back at Gibbs, claiming that Compass only needed to pay $250k for three months of power consumption.
Application Specific Integrated Circuit (ASIC) miners, specialist cryptocurrency mining equipment, are sold by Compass Mining and have the option of being hosted in its facilities spread out across North America. What will happen to the facility’s customer miners is uncertain.
According to its hosting agreement, Compass claims that it may “rearrange, remove, or relocate Customer Hardware without any obligation to Compass” in the event of an emergency.
According to the agreements, clients “waive their rights to seek remedies in court” and to participate in any class actions, and any proceedings that result from a lawsuit against Compass must be brought forward by each individual customer.
The scenario arises as a result of the ongoing price decline of Bitcoin and rising energy prices, which present a difficult market climate for many cryptocurrency miners.
When Bitcoin fell below $24,000 in mid-June, the profitability of many older ASIC miners went into the negative territory, and depending on the price of the asset, even some of the newer generation mining rigs are approaching or have already reached their shutdown limits.
The volume of BTC delivered by miners to cryptocurrency exchanges reached a seven-month high on June 15 at around the same time as Bitcoin mining profitability dropped over 75% from the market high. Several openly traded Bitcoin mining companies reportedly sold all of their May Bitcoin output.