Lake Parime, the company constructing a data processing centre in Central, has gone into liquidation, and its assets have been sold.

The UK-based startup was building a 10-megawatt data processing centre downstream from the Clyde dam, which was to be operational in March (2023).

Lake Parime’s website is locked on a screen animation with no company information or links available. 

In a Twitter post in December (2022), the company shared a timelapse video of the installation of data processing infrastructure at the leased site below the Clyde dam with no indication of financial woes ahead.

Earlier the same month, Lake Parime celebrated opening a 20-megawatt data processing operation at a nuclear power station in Ohio in the United States as part of its commitment to carbon-free data processing. 

One of the eight data processing modules at the centre

Lake Parime has not yet responded to Central Apps’ requests for comment.

The company had committed to not exclusively mining cryptocurrency at Clyde as a condition of their agreement with Contact Energy, their energy supplier. 

However, much of the capital the company was investing at Clyde was derived from cryptocurrency.

With the digital currency shedding 60 per cent of its value in 2022, offshore market watchers have speculated that Lake Parime was restricted in its ability to secure capital to continue investing in Clyde.  

Lake Parime joins other crypto mining operations that have succumbed to the dramatic revaluation of the digital currency in what is known as the “Crypto Winter”.

Statar Mining (Holdings) Ltd has purchased Lake Parime and its assets for an undisclosed sum in a deal that includes transferring all 16 staff members.

Statar Mining (Holdings) Ltd is based in London and was incorporated on January 25 (2023) just last week.

The data centre operators were to fund a substation connection at the Clyde dam site, providing a second connection for Clyde and bolstering electricity connectivity and supply security.

No information has been provided on the status of the second connection with Clyde, whether Lake Parime completed the link before going into liquidation, or if Statar Mining will continue with the commitment.

Contact Energy and line company Aurora are associated with the project. Both are yet to respond to Central App enquiries over Lake Parime’s sudden liquidation and sale and any possible implications for Central businesses involved in the project. 

The Central App will continue to follow the situation and provide updates when additional information is forthcoming.