The vanguard of Bitcoin mining in the US, GigaWatt just filed for bankruptcy to the US District Court in Spokane, Washington.
The market crash brings another casualty, with the latest coming from GigaWatt, a Washington-based Bitcoin mining company.
Founded in 2013, GigaWatt was the world’s biggest Bitcoin mine at that time. The co-founder, David Carlson, who left the company in August 2018, was one of the first miners who saw the potential to harness Central Washington’s cheap hydropower into a profitable crypto mining business.
The company started in an old furniture store, which then grew bigger as investors came and offered more services, such as hosting services for other miners.
As cryptocurrency rose to fame and became a hit in 2017, GigaWatt ambitiously planned to build a multimillion-dollar campus of 24 prefabricated crypto mining “pods”. More investors joined in to back up the company, including local government officials, who were very eager to transform the region’s agricultural-based economy.
What started as an ambitious plan became a total disaster for the company when crypto prices crashed in the beginning of 2018. Investors who had put millions of dollars demanded for a payoff, while none of the hosting facilities were completed due to cost overruns and construction delays.
Several investors decided to file lawsuits, with the latest being filed in October 2018.
As of now, the employees just found out that the company they work for is filing for Chapter 11 Protection to the US District Court in Spokane.
GigaWatt’s interim manager, George Turner admits to having found out just recently from a business associate, which soon followed by his discharge along with 19 other employees on Tuesday.
He said that the chapter 11 filing is likely connected to the attempts from three of the major shareholders to sell GigaWatt.
According to the bankruptcy filing, the company’s remaining assets are valued at less than $50,000, while the creditors’ claims is almost $7 million.
Among the creditors are the Douglas County Public Utility District, with a $310,000 claim, two Singapore-based firms, Cryptonomos PTE, and GigaWatt PTE, with combined claims of $3.67 million, as reported by BTCManager.