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Prolonged Bear Market Forcing Mining Firms To Close
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Prolonged Bear Market Forcing Mining Firms To Close

This week another Bitcoin miner shut down its operations this week, although the news didn’t seem to shock many. The latest closure is the US-based Giga Watt which went bankrupt last year. This follows on the trendline among big mining operation that stretches back years.

Giga Watt was only set up in 2017 and they announced their bankruptcy last year in a Telegram message saying that they would be halting all operations. Part of the message said. “as was reported in November of 2018, Giga Watt voluntarily filed with the Bankruptcy Court seeking debt relief and reorganization.” Adding on to this, the message on Telegram said, “subsequent to the filing, day to day operations continued until now. At present, both access and power to the facilities in which Giga Watt operates have been closed to the company.”

The crypto mining firm filed for Bankruptcy in the Eastern District of Washington in November, stating that it still owes its largest 20 unsecured creditors almost $7 million USD. Even though Giga Watt continued its operations until Tuesday, the company said that it would not be able to refund those who had investing in the WTT token.

However, there is a slight silver lining to this story as the mining firm said that they would be returning mining equipment to some of their customers saying, “customers will receive an email notification within the next two weeks with the tracking information for their shipments.”

21E6 seemed to be another promising company which later became 21.co. Backed by prominent Silicon Valley investors, the mining firm raised $70 million in 2013. After this though, “things took a turn for the worse and it ended up with long-term data center leases and falling revenue. The company was later saved after it was turned into Earn.com and sold to Coinbase.”

A few more examples include Hashfast, Cointerra and Alydian which went down a similar path. The bear market conditions were also impacted by Giga Watts’s issues. As reported by Bitcoin.com, over recent months, extraction of the leading cryptocurrency has become less profitable due to the low prices in the market which has left miners on the brink of collapse.

As the price of Bitcoin declines and as mining profits shrink, we expect to see more examples like this. On the other hand though, should the markets begin to pick up pace once again, it is likely that a number of these mining farms could re-open, sadly, so much of this does ultimately rely on the price of Bitcoin.

What are your thoughts on this? Let us know what you think down below in the comments!

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