Compass Mining CEO Resigns After 'Multiple Setbacks and Disappointments'
Bitcoin

Compass Mining CEO Resigns After 'Multiple Setbacks and Disappointments'

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5 months ago

The company has been accused of failing to pay power consumption charges at a site in the U.S. — allegations it firmly denies.

Compass Mining CEO Resigns After 'Multiple Setbacks and Disappointments'

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Compass Mining's CEO has resigned following "multiple setbacks and disappointments," the company has announced.

Whit Gibbs has left his position effective immediately — alongside Jodie Fisher, the company's chief financial officer.

It comes days after the company was accused of failing to pay power consumption charges at a site in Maine.

Dynamics Mining went public with the allegations and claimed that it was owed hundreds of thousands of dollars.

Compass shot back — and said many of the statements made on social media were "completely incorrect."

The company added it has "performed all obligations under its contracts," and suggested that Dynamics had misunderstood their agreement.

Compass has now filed a lawsuit — and suggested that the courts are a better way of resolving a dispute than airing dirty laundry on Twitter.

Who's in Charge?

On Tuesday, Compass Mining said two other executives, Paul Gosker and Thomas Heller, will now serve as interim co-presidents and CEOs.

The company's board has also kicked off a search for permanent replacements, and a statement added:

"Compass Mining was created to make mining easy and accessible. We recognize that there have been multiple setbacks and disappointments that have detracted from that objective."

A restructuring is now taking place that aims to regain "the goodwill of our stakeholders and the community."

Bitcoin miners have been having a very tough time of late, with electricity costs surging as a result of the war in Ukraine.

BTC's falling value has complicated matters further, as it makes the process of mining crypto less profitable than it was a few months ago.

Several mining companies have now been forced to offload some of their BTC in an attempt to stay afloat financially.

Analysts say many businesses are now battling to move their operations to places where electricity is more affordable.

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