Giga Watt Crypto Mining Company Files for Bankruptcy with Millions in Bitcoin Owed to Creditors
The bear market has been making several victims and, while exchanges are suffering from its effects, the miners are the ones suffering the most. Imagine this situation: you have a profitable mining business and you mine an asset that it quickly increasing in value. It looked like a good idea to start a business.
Nobody predicted how the future would turn out, though.
Now, Giga Watt, an American Bitcoin mining firm, has declared bankruptcy after filing for a Chapter 11 bankruptcy at the Easter District of Washington this week. According to the reports, the firms owes $7 imllion USD to creditors.
These creditors include Douglas County, which claims over $310,000 USD from the company, and the electric provider Neppel Electric, which is owed almost half a million dollars. The assets of Giga Watt are worth less than $50,000 USD now and it owes millions. The situation is dire.
According to our information, a special meeting of shareholders of the company has determined that the company is too insolvent to be able to pay its debts and that it had to ask for Chapter 11 of the Bankruptcy Code. The meeting was called out by Andrey Kuzenny, the director that owns more than 10% of the company.
About Giga Watt
The company was initially founded by Dave Carlson, a Bitcoin miner that planned to open up the industry to smaller scale miners. His main idea, which would drive the company later, was to allow the creation of customized mining “pods” along with the certainty of a stable and cheap electrical supply grid.
Giga Watt’s problems started when the companies was sued later because it did not conduct a registered securities offering. The problems got even worse when the company had to face the drop in the price of Bitcoin, as the price of energy remained steady.