Giga Watt Drastically Revises Assets in Updated Bankruptcy Filing

Bankrupt U.S.-based bitcoin mining firm Giga Watt just hiked the value of its assets in a revised filing.

The firm lodged an amended voluntary petition at the bankruptcy court in the Eastern District of Washington on Thursday, stating the value of its assets as being between $10 million and $50 million, far higher than the previously stated $0–$50,000 range.

The admin of Giga Watt’s official customer support channel on Telegram, “Andrey,” said Friday, “50k is an error. Amendment done. Process of filing was in rush. Mistakes in that case happens.”

The firm’s estimated liabilities and number of creditors remain the same as in the previous petition, at $10 million–$50 million and 1–49, respectively.

Giga Watt filed for bankruptcy on Monday with millions of dollars still owed to creditors, including hundreds of thousands to two electricity providers. Its biggest 20 unsecured creditors have claims worth nearly $7 million, according to the firm.

The firm was launched by veteran bitcoin miner Dave Carlson in May 2017 and held an initial coin offering (ICO) the same month that raised about $22 million-worth of cryptocurrency at the time.

This January, however, a group of plaintiffs sued Giga Watt claiming it conducted an unregistered securities offering and seeking the return of their investments.

Carlson left the firm quietly in August, after a number of job layoffs, according to reports.

The company’s collapse comes as times are increasingly hard for miners. The price of bitcoin, for example, hit a 14-month low near $4,000 earlier this week, having peaked at almost $20,000 last December. And the market capitalization of the wider crypto markets fell to $136 billion earlier today, its lowest since Sept. 26, 2017, according to data from CoinMarketCap.

Mining farm image via Shutterstock