The recent price slump in the crypto market has caused more harm than good. It has caused a lot of havoc, and it might put a lot of firms out of business. Bitcoin (BTC) is at the forefront of the massive declines.
The digital currency has lost a significant fraction of its value over the past week. While the market was expected to get better this week, it is declining further. Bitcoin (BTC) is now trading close to the $4,500 mark, a level it hasn’t tested for over a year now.
Bitcoin (BTC) Price Today – BTC / USD
The stocks of most crypto-related firms have declined drastically, and some firms can no longer operate optimally. Some have run into serious debts which might force them out of the market. Giga Watt is one of such firms. Giga Watt is a Bitcoin (BTC) mining firm which is based in the United States. Recently, the firm declared bankruptcy. Not only did it go bankrupt, but it is also owing debts worth millions of dollars.
Giga Watt Seeks Help for its Bankruptcy
On Monday, the BTC mining company filed for Chapter 11 bankruptcy at a court in Eastern District of Washington. The firm also declared that it’s still owing its biggest twenty unsecured creditors about $7M. According to the documents presented by the firm at the court, it is owing its utility provider in Douglas County where it’s based more than $310k. The firm is also owing Neppel Electric – its electricity provider – about $500 million.
According to the court documents, the estimated assets of the firm are less than $50k. Meanwhile, the estimated liabilities fall within the range of $10 million to $50 million. Giga Watt is bankrupt and no longer able to pay its debts when due, according to the minutes of a meeting held by the stakeholders of the firm.
The minute states that “The firm and its creditors will be served by the firm’s reorganization under Chapter 11 of the Insolvent Code. The meeting took place on the 18th of November and it was called by Andrey Kuzenny. Andrey Kuzenny is the director of the mining firm, and it owns over 10% of it.
About Giga Watt
Giga Watt was founded by Dave Carlson – a Bitcoin (BTC) miner. Carlson found the firm on the basis of opening up the industry to small-scale miners. To achieve this, he created customized mining pods together with stable and cheap power supply and 24/7 maintenance at a facility in central Washington.
The firm also conducted an ICO in May last year as part of its plan to enable investors to buy shares in the services of the firm. During the fundraising, Giga Watt raised digital currency worth about $22M. Nevertheless, the firm ran into an unforeseen circumstance earlier this year.
The firm was sued by a group of plaintiffs for allegedly conducting a securities offering that was not registered. The plaintiffs sued the firm in January. They were asking for the return of their investments due to the fact that the company didn’t meet the construction deadlines. The firm also didn’t honor its promises to refund the contributions of its investors.