Compass Mining: Reviews, Costs, Lawsuits, Legit Complaints

Compass Mining: Reviews, Costs, Lawsuits, Complaints, and Are They Legit?

You’ve likely scoured the online space for the most reputable and lucrative Bitcoin mining hosting solutions when trying to get into Bitcoin mining. At some point in your search, there’s a chance you’ve come across Compass Mining.

Compass Mining has been a trailblazer and innovator in the crypto-mining space. From its facilities to its mining products, the company seems to have everything you need for a lucrative mining venture — even if you’re a novice miner.

However, the question is this:

Is it the right Bitcoin mining service for you?

We’ll answer this question by looking into the company’s service. More specifically, reviews on the company (both the good and bad).

We’ll also look into pricing and some of the miners’ most common concerns with the company.

Let’s dive in.

Compass Mining Reviews

Let’s start with some reviews on Compass Mining — we’ve gathered them from several sources, like TrustPilot or user-generated threads like Reddit.

The Positives

True to its pledge, Compass Mining has transformed Bitcoin mining from a niche industry to one that many can get into, and people have been quick to notice this.

Investment strategist Lyn Alden is one such commentator who wrote about Compass Mining and how it has “democratized” Bitcoin mining.

According to her review, Compass Mining has been a game-changer in allowing individuals (not companies) to mine Bitcoin and give miners a marketplace for their mining endeavors.

By partnering with Compass Mining, miners only need to purchase an application-specific integrated circuit or ASIC and host it on any of the company’s facilities.

In short, Compass Mining has opened the doors of opportunity for ordinary folks who wish to get on the mining bandwagon.

Surely enough, positive reviews abound on the company’s site, aligning with many of Ms. Alden’s positive statements.

The Negatives

Despite the praises sung for Compass Mining, the company and its services aren’t without their share of negative feedback.

For one, some users have commented on the downtime.

There have been reports of significant issues with offline miners, which have disrupted mining operations and impacted investment returns. This downtime has led to concerns about profitability and reliability.

In 2022, reports of communication issues also flooded online forums. Many users on Reddit were taken aback and commented about delays and communication gaps. Coincidentally, these issues came during Compass Mining’s growth operations; many on Reddit acknowledged this.

Other Reddit reviews concerned the company’s use of third-party hosting providers. Based on these reviews, there may be issues with enlisting third parties since the company (Compass Mining) may lose control of any issues that arise.

Compass Mining Costs and Prices

So, how much would it cost for you to mine on Compass Mining?

The initial cost for a mining device is $7,500, accompanied by a monthly fee of $150 to $211 for hosting.

Hosting rates at affiliated facilities range from $0.060 to $0.065 per kWh, including rack space, electricity, and technical support.

Typical Compass Mining Complaints

Across various sources and threads, the complaints against Compass Mining usually involve issues with miner delays, offline miners, and mismanagements.

Delays in Miner Activation

According to CoinTelegraph, customers have faced significant delays in getting their miners online. Some have even been on the waiting list for months.

These delays have directly impacted mining profitability, particularly if a Bitcoin halving event occurs.

Miner Downtime

For other users, frequent offline miners are a cause of concern.

Numerous users have reported recurring issues with miners being offline for extended periods, sometimes months.

According to users, Compass Mining’s support response to these problems has been slow. This delay has exacerbated the frustrations of affected customers.

Mismanagement of Miner Assignments

In one notable case, a customer invested approximately $100,000 with Compass Mining over nine months. Unfortunately, there weren’t sufficient active miners due to the continuous reassignment of their units to other clients.

The complaint made waves on Trustpilot. This mismanagement resulted in a substantial financial loss for the customer and underscored operational concerns within Compass Mining’s service delivery.

Compass Mining Lawsuits

Because of the aforementioned issues, Compass Mining has found itself in the middle of numerous lawsuits.

Here are some of the most notable lawsuits involving the company:

  • Fraud Allegations From Bit River Incident: Customers allege fraud against Compass Mining for failing to retrieve mining machines after severing ties with hosting provider Bit River in Russia. Lawsuits totaling over $2 million have been filed against Compass Mining in connection with this incident.
  • Proposed Class Action Lawsuit: Discussions on Reddit have highlighted a proposed class action lawsuit against Compass Mining. The proposed legal action cited poor communication, extended miner downtime, and concerns over the company’s one-sided terms and conditions.
  • Legal Victory Against Dynamics Mining: Compass Mining won a $1.5 million lawsuit against hosting provider Dynamics Mining. The lawsuit was filed due to Dynamics Mining’s failure to deliver services and withholding clients’ mining machines, resulting in a favorable outcome for Compass Mining.
Compass Mining Ratings

On Trustpilot, Compass Mining has a rating of 2.7 stars out of five.

This indicates a “poor” average rating. Despite roughly 70% of voters giving the company five stars, an overwhelming 24% rated the company with one star.

Compass Mining and Bitcoin Mining: The Numbers

In case you’re curious about some of the figures surrounding the company and Bitcoin mining as a whole, here are some that will interest you.

Compass Mining Statistics

Let’s start with some statistics about Compass Mining:

  • Compass Mining has been in the Bitcoin mining business for more than a decade.
  • There are 19 mining farms that make up the company’s mining network. The vast majority of them are in Manitoba.
  • 5% was the peak uptime achieved by Compass Mining. This took place on April 9, 2024.

Bitcoin Mining Statistics

Below are some Bitcoin miners stats and figures surrounding Bitcoin mining:

 

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