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The mining closures reveal the recurring trend of the bitcoin bear market

The mining closures reveal the recurring trend of the bitcoin bear market

Extraction

Another bitcoin miner this week interrupted his operations, even if the news was not much of a surprise. The last closing, of Giga Watt based in the United States, failed last year, follows a trend among the major mining operations that date back to previous years.

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Failure to close

After declaring bankruptcy last year, Giga Watt, launched in 2017, announced in a Telegram message that it would cease all operations. "As reported in November 2018, Giga Watt spontaneously presented the bankruptcy court in search of debt reduction and reorganization," reads the message. He added:

"Following the filing, daily operations have continued until now.Actually, both access and power to the facilities in which Giga Watt operates have been closed to the company."

The mining company Giga Watt filed for bankruptcy in a court in the eastern district of Washington in November, stating that it still owes its largest 20 unsecured creditors about $ 7 million. Despite continuing to run until Tuesday, the company said it would not be able to repay those who invested in its WTT token. <Img class = "aligncenter” title=”Giga Watt becomes the last Bitcoin mining company to make busts” src=”https://cryptomining-blog.com/wp-content/uploads/2018/03/giga-watt-logo.jpg” alt=”Giga Watt becomes the last Bitcoin mining company to go bust "width =" 576 "height =" 216″/>

But Giga Watt said he will return mining equipment to some of his customers, adding: "Customers will receive an email notification within the next two weeks with tracking information for their shipments."

A recurring trend

The case of Giga Watt is not unique: a number of mining companies have had to close their purchases after the bearish markets prolonged in recent years, due to the decline in revenues. In 2016, Knc Miner, one of the fastest growing mining operations, declared bankruptcy and had to close, despite having a positive outlook and raised over $ 32 million in venture capital by investors.

Another apparently promising company was the 21E6, which later became 21.co. Backed by leading Silicon Valley investors, the mining company raised $ 70 million in 2013. But things got a bad turn and ended with long-term data center rental contracts and declining revenues. Later the company was saved after being turned into Earn.com and sold to Coinbase.

<img class = "wp-image-277171 aligncenter” title=”Giga Watt becomes the last Bitcoin mining company to make busts” src=”https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901-300×225.jpg” alt=”Giga Watt becomes the last Bitcoin mining company to go bust "width =" 486 "height =" 365 "srcset =" https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901 -300×225.jpg 300w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901-768×576.jpg 768w, https://news.bitcoin.com/wp-content/uploads/2019 / 01 / shutterstock_709695901 -1024×768.jpg 1024w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901-80×60.jpg 80w, https://news.bitcoin.com/wp-content / uploads / 2019 /01/shutterstock_709695901-160×120.jpg 160w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901-696×522.jpg 696w, https://news.bitcoin.com / wp-content /uploads/2019/01/shutterstock_709695901-1068×801.jpg 1068w, https://news.bitcoin.com/wp-content/uploads/2019/01/shutterstock_709695901-560×420.jpg 560w, https: // news .bitcoin.com /wp-content/uploads/2019/01/shutterstock_709695901.jpg 1200w "sizes =" (maximum width: 486 px) 100vw, 486 px”/>Hashfast, Alydian and Cointerra are more examples that have suffered similar destinies, with long-term data center rental contracts, but falling revenues. The downside conditions of the market have evidently also exacerbated the problems of Giga Watt. The extraction of BTC has become less profitable due to a collapse in prices, leaving many miners on the verge of collapse. As reported by Bitscoin.com last week, some mining operations are packing and moving to countries like Mongolia, looking for benefits such as cheaper electricity and cooler weather.

Do you think that other mining companies will go like Giga Watt or the bear market will end soon? Tell us in the comments section below.


Images kindly granted by Shutterstock and Giga Watt.


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