Bitcoin mining company Aquifer LLC became the latest victim of falling BTC prices.
The privately-funded Californian company recently filed for bankruptcy protection after allegedly facing losses in its Bitcoin mining services. In its filling to the US court, Aquifer mentioned its outstanding liabilities to be hovering between $1m and $10m, so do their assets’ value. The number of creditors meanwhile were declared to be less than 49.
By looking at the Aquifer official LinkedIn profile, it is clear that the company indeed had invested a large sum into their business. It includes a power generation capacity over 100 MW; perfected air cooling systems; and state-of-the-art methods to reduce power costs (the lowest in the US, as claimed).
But as it seems, a part of investments to create a world class mining facility came from Mega Big power’s franchisee programs (MBP). In his conversation with CoinDesk, MBP owner Dave Carlson expressed his unawareness about the Aquifer’s bankruptcy plans, saying his company has not been in contact with them for past few months.
“My focus will be to attempt to recover my equipment from their location,” he added.
Aquifer meanwhile told the US Bankruptcy court that it has sufficient funds to payback its creditors.
A Trouble for Bitcoin Mining Community
Needless to say, Aquifer is not the first Bitcoin mining business to run out of fuel. There have been many similar businesses in past that has become the victim of Bitcoin’s bearish movements — the latest being CoinTerra. The cost of handling the equipment and staff is simply outgrowing the cost of mining a single Bitcoin. The increasing Bitcoin mining difficulty is another reason why these businesses are suffocating extensively.
Bitcoin price needs to be at least around $400 to save Bitcoin mining community from further losses. At press time, it is around $236.