The so-called Crypto winter is here to stay it seems. The bearish crypto market cycle started roughly 12 months ago after the all-time peak in December 2018. Many crypto startups already closed down their operations. Now U.S. mining company Giga Watt announced that it is shutting down mining operations. In a message to its customers, the company said that the decision was made because it no longer had the funds to keep operating its mining facilities.
Two months ago, the company filed for Chapter 11 bankruptcy. It had lost a large amount from its revenue due to collapsed crypto prices. Allegedly, Giga Watt owed more than $7 million to creditors and investors. To its electricity provider, Neppel Electric, GigaWatt purportedly owned up to $500,000 in utility bills. Just recently, major Chinese crypto mining and hardware supplier Bitmain halted its mining operations in Rockdale, Texas. The company also reportedly had to lay off most employees.
Currently, crypto mining is not making any profits. Most of the new crypto mining facilities that were established in the 2017 crypto hype have actually closed down already. Large crypto-MLM schemes such as OMNIA TECH stopped the mining because of the losses. Others such as NEXUS GLOBAL are looking for crypto trading to compensate the losses from mining. In any way, crypto mining investors may not expect any profitable exit soon. On the contrary, most of these investors will lose all their money in the expected wave of insolvencies in the crypto mining space during the lasting crypto winter.