Bitcoin Mining Host Giga Watt Files Chapter 11

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Total News – Atlanta, GA 11/22/2018. U.S.-based bitcoin mining firm Giga Watt has filed for bankruptcy in U.S. District Court in Spokane. The company filed Chapter 11 on Monday, Nov 19 claiming that the firm is "insolvent and unable to pay its debts when due."

The company has listed its estimated assets of between $0-$50,000 with estimated liabilities of $10 million to $50 million.

Giga Watt still owes its creditors nearly $7 million. The creditors include the Douglas County base with a claim of over $310,000, Neppel Electric with almost $500,000, and two Singapore-based firms – Cryptonomos PTE and GigaWatt PTE – with combined claims of $3.67 million.

According to Seattle Times, GigaWatt has been having legal troubles with investors who paid the company $22.6 million, mostly in cryptocurrencies, in exchange of Giga Watt's tokens (WTT). These tokens entitled the investors to use GigaWatt's hosting services for their own mining computers at a discounted price. David Carlson, co-founder and GigaWatt's other owners have also invested $25 million. Due to construction delays and costs overruns, the hosting facilities were never completed.

The mining company is also facing eviction as the Port of Douglas County has started the eviction process.

GigaWatt was founded by David Carlson, a former Microsoft engineer. The company built a 13-air cooled mining facilities,"Giga Pods", which takes advantage of mining hardware's extremely high power density, avoids active cooling consumption, and saves power for high-efficiency computing. Carlson built the "pods" in Central Washington because the cost of power is less than a quarter of the U.S average. 

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