Giga Watt to Declare Bankruptcy

Mining company ows million of dollars to investors
21 November 2018   627

The American mining company Giga Watt filed bankruptcy documents in a court of the Eastern District of Washington, CoinDesk reports.

Giga Watt's lenders include approximately 20 companies, including utilities and electricity providers. The total liabilities range from 10 to 50 million US dollars. At the same time, the company's assets are estimated at only $ 50 thousand.

According to Crypto News, in August 2018, the company reduced its staff from 63 to 16.

Giga Watt was founded by bitcoin miner Dave Carlson. In May, the company held a tokensale during which it managed to raise $ 22 million.

The company raised funds for the launch of mining and the creation of a vault for cryptocurrency. In exchange for the investment, investors should have received either Giga Watt tokens or mining equipment. Tokens would give investors exclusive rights to use the company's premises without a lease for 50 years.

However, at the beginning of this year, it became known that a class action was filed against Giga Watt, in which the company was accused of conducting an unregistered offer of securities. Also, the lawsuit states that the construction deadlines were not met, and promises to refund the funds were not fulfilled.

Bitmain's Q3 Losses to Reach $500M

Bitmain still hopes to conduct an IPO at Hong Kong Stock Exchange
19 February 2019   99

The Chinese mining company Bitmain lost $ 500 million in the third quarter of 2018 amid a decline in the cryptocurrency market, CoinDesk reports, citing updated financial reporting provided by the Hong Kong Stock Exchange (HKEX) for its initial public offering (IPO) on its site.

In the first nine months of last year, Bitmain earned about $ 500 million, with a total amount of revenues of $ 3 billion, a source familiar with the situation said. Earlier, Bitmain stated that its profit for the first half of 2018 was $ 1 billion. As reported, subtracting that from a $500 million profit for the first nine months leaves it with a net loss of roughly $500 million for the third quarter.

In the past, Bitmain also reported that its income for the first half of the year was $ 2.8 billion. Thus, taking into account the total amount of revenues for nine months, only about $ 200 million remains for the third quarter.

The updated statements also contain information about Bitmain's cryptocurrency possessions - they depreciated from more than $ 800 million on June 30 to less than $ 700 million at the end of the third quarter. The fall of more than $ 100 million coincided with a general decline in the cryptocurrency market.

The application for IPO, issued by Bitmain at the end of September, contained information that the company held mainly Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash. The ratio of assets in its portfolio is unknown. According to CoinMarketCap, the rates for these cryptocurrencies fell by more than 50%, and Bitcoin Cash lost over 70% of the cost.

The documents will be presented to the general public only if the Bitmain application is approved to the meeting regarding the listing of the company's shares, which may not take place, given HKEX’s doubts about the viability of mining companies.