Giga Watt Crypto Assets Valued Between $10-50 Million vs $50,000 In New Bankruptcy Filing Update
Giga Watt Drastically Revises Company Assets As It Updates Bankruptcy Filing
One of the latest victims of the Bitcoin bear market, a crypto mining U. S.-based company called Giga Watt, has decided to revise its bankruptcy filing.
As we have reported this week, Giga Watt has decided to declare bankruptcy as the company is currently unavailable to pay what it owes to its creditors and the profits of the company have been considerably down since the price of Bitcoin has fallen more and more
According to reports, the company has lodged an amended voluntary petition at the bankruptcy court, which is located in the Easter District of Washington. They decide to revise the value yesterday, November 22. The assets of the company are now worth between $10 and $50 million USD, far higher than which was stated before, that was about $50,000 USD.
A Filing Error
According to “Andrey”, the official admin of the Giga Watt official customer support channel on Telegram, the affirmation that the company only had $50,000 USD in assets was a mistake. He affirmed that the company had to be quick to write everything and that the process of filing the requirement was made in a rush, so it looks like the company forgot some zeroes.
The number of creditors that the company has remained the same as was stated before, though. 1 to 49 creditors which the company owes a total of about $10 to $50 million USD.
Originally, Giga Watt has filed for the bankruptcy process this Monday, November 19, as it owed too much money to the creditors including two electricity providers that were the biggest creditors of the company. According to the information from the filing, the biggest 20 unsecured creditors of the company claim worth nearly $7 million USD from the company, which is unable to pay.
About Giga Watt
Giga Watt was a crypto mining company focused on Bitcoin mining. The company was originally founded by Dave Carlson in May 2017. The entrepreneur had an Initial Coin Offering (ICO) at this same month and he was able to get around $22 million USD in investments at the time, which helped to kickstart the company.
While the bear market has certainly influenced the profitability of the company and its future, it was starting to get clear that something was off as soon as 2018 started. In January, a group of plaintiffs sued Giga Watt as they claimed that the company conducted an unregistered securities offering without contacting the law.
The Securities Act of the United States prohibits companies from selling securities in the territory of the country without first registering with the U. S. Securities and Exchange Commission (SEC).
During August 2018, the founder of the company has quietly left it after many people were laid off. The crisis was already clear at this point.
Finally, there is the collapse now. The company is not being so profitable anymore and it basically owes more money to the creditors than it has in assets, which may be a lot more than what the company has affirmed before but are still insufficient for the company to pay its dues.
The Latest Victim Of The Bear Market
It can be said that Giga Watt is only the latest victim of a far larger problem. If crypto traders and holders were negatively influenced by the bear market that is the official trend in the market right now, miners are certainly the ones who took the hit the hardest way.
The price of Bitcoin has hit a 14-month low now and it is just above the mark of $4,000 USD. In December last year, it peaked at around $20,000 USD, which is a proof of how low the market has sunk.
As miners depend on the price of tokens being high to get their profits, many companies are going down this year and possibly the trend will continue until we have the next bull run. It looks like there is a fair chance that this bull run will not happen in 2018 as the year is almost over now, so this can represent a serious problem for these companies and the markets that they represent.