Compute North Closes on $25M in Financing
Eden Prairie-based Compute North has closed on $25 million in new financing to fuel growth.
The company provides computing infrastructure for customers focused on mining cryptocurrency.
“Our clients are customers that are primarily in the Bitcoin, Ethereum, or cryptocurrency mining space,” said Dave Perrill, CEO of Compute North. “They range from publicly traded companies to large, sophisticated family offices, private equity, and hedge funds.”
Cryptocurrency has brought a new batch of jargon for investors to learn and understand. Digital coin transactions are tracked in a “blockchain,” which is essentially a database. “Miners” verify the legitimacy of transactions. In exchange for this auditing work, miners can be given digital currency such as Bitcoin.
Perrill co-founded the company in 2017. Today, the firm has about 30 employees. Perrill is not aware of any other Minnesota-based companies that offer the same services.
“We are a low-cost, high-performance computing hosting company. We do the development, we do the management…but we don’t actually mine ourselves,” said Perrill. “In computer-speak it’s called co-location services.”
The company has data center facilities in South Dakota, Nebraska, and Texas. In March, it will break ground on a fourth data center location, also in Texas.
Perrill declines to disclose the company’s revenue but says that the business grew tenfold in 2020.
Earlier this week, Tesla surprised many with the news that the electric car company had acquired $1.5 billion in Bitcoin during January.
On Thursday, news broke that Bank of New York Mellon Corp., the oldest bank in the U.S., would begin to “hold, transfer and issue bitcoin and other cryptocurrencies on behalf of its asset-management clients,” according to a report in The Wall Street Journal.
Veteran Twin Cities serial technology entrepreneur Tom Kieffer was named to the Compute North’s board of directors in December.
“He just brings a large breadth of experience in both startups and growth-stage firms,” Perrill said of Kieffer. “He has an incredible network of just really smart, talented people…he’s just a really smart, strategic asset to us.”
The company’s financing was a combination of debt and equity. The debt was a senior secured loan from the Connecticut-based Post Road Group.
A statement from the company said: “Based on unprecedented demand for its services, the company will continue to seek growth capital to further facilitate customer demand.”
Perrill is clearly bullish on the future.
“With this growth, we’re certainly hiring,” said Perrill. “We’re certainly looking for some top talent.”