Mining Startup, CryptoSolarTech To Return $68 Million It Raised During Initial Coin Offering

CryptoSolarTech, a cryptocurrency mining startup with Spanish origins is set to return the $68 million it raised during its ICO. This is according to a Twitter post of the official letter the company sent to its investors yesterday, Wednesday, February 20th. The screenshot was uploaded by Sergio Carrasco, a Spanish IT lawyer.

CryptoSolarTech To Return $68 Million To Investors

During an initial coin offering round, the mining startup was able to raise $68 million from investors. The company was to set up a solar-powered cryptocurrency mining facility in Southern Spain. Unfortunately, it wasn’t granted the building permit it needed to start the project. According to the startup, there was nothing they could have done to secure the permit. So, the company decided to refund the $68 million to those who invested. In the letter, CryptoSolarTech made it clear that it is not responsible for token purchases that may have been made after February 19.

The CryptoSolarTech token was released in June 2019 through an initial coin offering. The ICO was meant to allow the company to raise funds that would be used to finance the operations. The project raised $68 million within less than two months. This was over the minimum investment of 900,000 euros by 6,500%. Most of the funds that were raised originated from Spain and Singapore. While everything appeared promising at first, the company token lost its value months later. In fact, it made the list of biggest ICO losers according to Diar, the financial analytics firm.

Last October, Risen Energy, a Chinese energy firm announced that it was entering into a partnership with CryptoSolarTech. Both firms stated that they would work together to develop 300 megawatts of photovoltaic power capacity. Risen Energy was to be responsible for construction and engineering responsibilities for CryptoSolarTech.

Bitfury Makes Expansion Plans

Mining firms across the globe have been having a hard time. Many of them lost their capital when the price of cryptocurrencies fell significantly against the USD. Even mining giants like Bitmain felt the heat of the price decline. However, some have survived the storm and are now making expansion plans.

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Bitfury, last month, announced that it is making plans to launch mining facilities in Paraguay. These aren’t just small facilities as they will cover 200,000 square meters of land and would be powered by stations with 500MW capacity. The expansion was possible thanks to its partnership with Commons Foundation, a peer-to-peer research firm. Both firms will launch a series of sites for transaction processing using Bitfury’s BlockBox AC data centers in the country.

This move by Bitfury is part of a larger initiative called Golden Goose. The primary goal of this initiative is to expand blockchain innovation in all Spanish speaking countries. Commons Foundation also announced its plans to open a cryptocurrency exchange in Paraguay that will have a global reach. It is also going to issue a Golden Goose token to all participants involved in both projects. The exchange will use a Crystal analytics platform by Bitfury to make sure it complies with the KYC and AML policies in the country.

Do you think CryptoSolarTech will be able to keep its promise and return the $68 million to all its investors within the next 60 days? Share your opinion in the comment section.


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