Great North Data, the Canadian cryptocurrency mining company, has filed for bankruptcy due to insolvency.

According to the CBC the firm, which operates crypto mining facilities in Labrador City and Happy Valley-Goose Bay, filed for bankruptcy at the end of November, based on CA$13.2m ($10m) in liabilities against just CA$4.6m ($3.5m) in assets.

The firm has a list of creditors, including the Newfoundland & Labrador government’s Business Investment Corporation, to which it apparently owes CA$313,718, and the Atlantic Canada Opportunities Agency which funded the company to the tune of CA$500,000 back in 2015.

Great North Data is just the latest in a string of mining companies to go to the wall due to challenging market conditions. In January Washington-based Giga Watt shuttered due to insolvency, and in October Virginia Beach-based BCause mining went bankrupt.

That said, other mining companies are still expanding their operations. Bitfarms, which manages five mining facilities across Quebec is increasing capacity, UK-based Argo Blockchain, which also operates facilities in Quebec, just doubled its order for new mining rigs (read more), and Bitmain has recently opened what it says could become the world’s largest Bitcoin (BTC) mining facility, in Rockdale, Texas (read more).

AYO.NEWS says:

It seems that what we are seeing is simply the result of it being unrealistically easy to make money in the mining industry during the crypto boom. Now, with a more realistic environment, it seems the well-run mining companies are still thriving, while the overextended and inefficient ones are dropping by the wayside.

In fact, in August AYO.NEWS reported that, despite the Bitcoin (BTC) mining hashrate rising significantly, miners are raking in more than ever, with revenue topping $14 billion (read more).

AYO.NEWS says features the opinion of the author and does not necessarily reflect the views of Pentagon Digital Limited.