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Bitcoin Mining Pioneer GigaWatt Seeks Bankruptcy Protection

Bitcoin mining pioneer, GigaWatt, seeks Chapter 11 bankruptcy protection in Spokane, Washington.  The filing is the latest twist in an entrepreneurial saga stretching back to the early days of bitcoin and may be connected to efforts by three of the company’s majority shareholders to sell GigaWatt.  One of its co-founders, David Carlson, a former Microsoft engineer, began mining bitcoin as a hobby in 2012 and was among the first miners to tap the cheap hydropower of Central Washington. In 2013, Carlson built what was then the world’s largest bitcoin mine in downtown Wenatchee and later expanded into hosting services for other miners.  Bitcoin and other cryptocurrencies are produced by solving ultra-complicated math problems with powerful computer servers. Those computers consume huge amounts of power — a single bitcoin today can cost around $2,500 in power — which is why Carlson came to Central Washington, where power sells for less than a quarter of the national average.  As the price of Bitcoin has declined, however, so has the utility for even efficient mining services, although the Port of Douglas County would love for the project to be resuscitated.  If you deal in cryptocurrency and have any questions about salvaging your business via restructuring or bankruptcy, please do not hesitate to give us a call.  For more details on this particular bankruptcy filing, please review the following article from the Seattle Times.