Giga Watt, the Bitcoin mining company that declared itself as bankrupt two months ago, is now officially out of business, owing to “non-payments.”
The downfall of the company started with it filing for bankruptcy at a local court, stating that there was an enormous gap between its assets and liabilities. Its assets were valued at $50,000 while it had outstanding liabilities of $10-50 million.
However, they changed the value of their assets mentioned to court to $10-50 million as well, citing it as an error on their part.
The company still conducted mining operations for many clients during the court proceedings. The mining services offered by the company was very recently cut off, the reasons for which the company elaborated as “non-payments.”
The company made a very short but to-the-point post on their Telegram account, stating:
“Shutdown due to non-payments. Revenue from the hosting less than expenses.”
The information first came through the Telegram account of a company admin named Andrey. Allegedly the head of investor relations at Giga Watt, Andrey Kuzenny responded to curious users and observers asking for details with very cookie-cutter responses. Replying to one comment, he said,
“On the advice of my attorney, I can’t comment or release any information retaining to Giga Watt due to on the legal proceedings. Once clear our legal team, we would be happy to tell our side of the story and provide all necessary details about our company.”
Redirecting all further questions to the company’s Public Relations department, he said, “For the additional questions you can contact our PR guy: @maxsmetannikov.”
The value of Giga Watt’s token has taken a huge hit as well, reflecting the company’s downfall. The WTT token is currently valued at $0.011, which is 99.3% down from last year’s when it was $1.79. The token has been in a steady downfall since last year. Starting from $1.79, from which it has decreased by 99.3%. Additionally, the token has seen a -63.6% drop in the value of its token in the past 24 hours, and -57.2% in the last 30 days. The peak value of WTT was $4.62, which was right around the time the token first hit the market.
The company is currently facing multiple lawsuits from their investors, among which are Singapore-based Cryptonomos Pte. and the Douglas County Public Utility District, with a total amount of claims of $3.67 million.