A US-based cryptocurrent mining company filed for bankruptcy due to the decline in the price of Bitcoin.
On Monday, Giga Watt Inc. filed for bankruptcy of Chapter 11 in a court in Washington, with its shareholders stating that the company can no longer settle its debts.
Giga Watt offered remote cryptocurrency mining hosting plans at the company data centers in Washington, promising low customer rates. In addition, the company had also sold hardware mining hardware on its website.
Giga Watt's business was big enough to make it one of the biggest cryptocurrencies in the world, according to Cointelegraph. However, it seems that the company's activities have taken an immersion while the price of Bitcoin has plummeted. In December 2017, a single Bitcoin was worth $ 19,000, but now its value has dropped to $ 4,400. According to court documents, Giga Watt now has less than $ 50,000 in assets, but owes $ 10 million to $ 50 million to his creditors.
Originally, Giga Watt had plans to build 22 "encryption pods" or mini-data centers to serve its customers. However, the company now hosts only one pod for its customers, according to the local news agency iFiber One, which reported that Giga Watt could actually boast nearly $ 70 million for its largest creditors.
Giga Watt did not immediately respond to a request for comment. But his bankruptcy filing is another sign that the cryptocurrency mining request has faded. Last week, Nvidia reported having excess unsold graphics cards in part because the miners were not buying them anymore.
The good news is that without the encryption request, the prices of the graphics cards are back to normal.
This article was originally published on PCMag.com.