Houlihan Lokey Advises Compute North

Houlihan Lokey is pleased to announce the successful placement of $23 million of growth capital for Compute North. Proceeds from the transaction were used to expand capacity, fund the company’s accelerated growth, and pay transaction-related fees and expenses. The company raised $15 million of senior secured debt with Post Road Group and $8 million of equity. The transaction closed on January 29, 2021.

Compute North is a provider of TIER 0™ computing. The company delivers efficient, low-cost, and highly scalable infrastructure for clients in the blockchain, cryptocurrency mining, and high-performance computing spaces. With operations in Texas, South Dakota, and Nebraska, Compute North brings a unique combination of data center, energy, and computing expertise to deliver low-cost computing solutions.

Due to several recent and large contract wins that required additional capacity and significant upfront investment, Compute North decided to explore various capital alternatives to fund its growth and engaged Houlihan Lokey as its exclusive financial advisor. Houlihan Lokey assisted the company in arranging, structuring, and negotiating the financing.

The financing achieved Compute North’s primary objectives, including (i) increasing capacity to support the company’s accelerated growth, (ii) expanding the team, (iii) minimizing equity dilution among the ownership group, and (iv) providing payment flexibility to maximize reinvestment in the business.