August 5, 2021

Mining Firm Giga Watt Goes Bankrupt With Millions Of Debts …

Mining firm Giga Watt goes bankrupt with millions of dollars in debt

The American mining company Giga Watt filed for bankruptcy and still owes its creditors millions of dollars. Writes about this CoinDesk.

Mining Firm Giga Watt Goes Bankrupt With Millions of Debts American mining firm Giga ...

On Monday, the firm filed for bankruptcy with the Federal District Court for the Eastern District of Washington under Chapter 11 of the Bankruptcy Code. Giga Watt still owes about $ 7 million to its 20 largest creditors, according to court documents.

Mining Firm Giga Watt Goes Bankrupt With Millions of Debts American mining company Giga ...

Creditors include a utility provider in Douglas County, where the firm is based (Giga Watt owes him more than $ 310,000) and electricity supplier Neppel Electric (owes him nearly half a million dollars)..

Giga Watt’s assets are less than $ 50,000, while the firm’s debt is estimated at $ 10-50 million, according to court documents..

“The company is insolvent and unable to pay off its debts on time,” reads the minutes of a special meeting of Giga Watt shareholders on November 18. “It would be better for the corporation and its creditors to reorganize in accordance with Chapter 11 of the Bankruptcy Code”.

Giga Watt was founded by bitcoin miner Dave Carlson with the goal of making the industry accessible to small-scale miners through the creation of modifiable “mining bays” provided with 24/7 service and cheap and stable electricity. All this was planned to be organized at a facility in Washington..

The company conducted an Initial Coin Offering (ICO) in May 2017 – under which investors could buy a stake in Giga Watt’s services – and raised a $ 22 million cryptocurrency at the exchange rate at the time..

Mining Firm Giga Watt Goes Bankrupt With Millions of Debts American mining firm Giga ...

In January, a group of plaintiffs sued Giga Watt over an alleged sale of unregistered securities. The plaintiffs wanted to get their investments back. the firm missed the construction deadline and allegedly failed to deliver on its return on investment promise.

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