The Bitcoin boom that ran for 12 months in 2017 followed by the declining price trend in 2018 contributed to a world of difference for investors of GigaWatt in Central Washington, Settle.
GigaWatt was following an upward trajectory in past October. The prices of Bitcoin and several other cryptocurrencies went up, and international investors were pitching in to get their best in digital action.
GigaWatt is a company based in East Wenatchee. They have expanded to 62 employees. They raised several million dollars for a game-changing project. The campus of GigaWatt had 24 prefabricated buildings, which was meant for would be crypto “miners” to run their own computers to solve the complicated mathematical algorithms which would yield gold.
Dave Carlson, the founder of GigaWatt, was a Seattle Area programmer who identified their opportunities on the cutting edge of revolution.
The downward price trend had Giga Watt suspend 80% of their staff off work, suspended their construction projects due to the legal issues that followed the millions of dollars in debt and a lot of questioning came up with regards to its unconventional financing.
Uncertain costs of electricity and the declining cryptocurrency prices ignited a model gold rush in the Mid-Columbia Basin. There was a market correction following which small players were wiped out of the market, and this even forced the larger players to rewrite their plans for this industry.
George Turner, who will be managing the company until a new CEO is recruited stated that Giga Watt will be bringing in some truly radical changes.
Carlson who denied an interview in a brief message stated that he left Giga Watt because he was not able to affect what he thought was the right direction for the company. He further opined that some of the current wounds of GigaWatt were self-inflicted wounds.
He stated that the company was reeling in debt worth $5 million in debt. The debt was mostly related to its contractors, which led to construction delays with cost overturns on the pod project.
GigaWatt has been subject to several lawsuits by investors due to its widespread and controversial financial strategy – ICOs, its custom engineered cryptocurrency.
Several investors in the Seattle area paid Giga Watt $22.6 million. The payment was mostly in the form of Ethereum, Bitcoin and other cryptocurrencies. The investors were entitled by virtue of their investment in tokens to be able to use the Giga Watt’s hosting services for mining their coins at a discounted price. This was the assurance that will happen when the services will come online.
GigaWatt converted the cryptocurrency into dollars. The company used these dollars for constructing mining pods.
Due to poor returns due to suspended constructions tasks, investors saw little return. And, investors went ahead stating that ICO sales of GigaWatt violated securities laws. The attorney of GigaWatt declines to comment.
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