Another Bitcoin company biting the dust; Bitmine AG, the Swiss Bitcoin mining hardware producer, has declared itself bankrupt. The company has been facing huge financial trouble and multiple lawsuits in regards to undelivered hardware and broken promises. It has now declared bankruptcy in the Swiss city of Bellinzona.
The home page of the company says that it was in a difficult situation from several months. Though it tried its best despite our biggest attempts to save the company by restructuring its product and services and seeking for new investments, all without success left us no other chance than the road to bankruptcy.
Bitmine AG informs that the accounts, assets and all company documents are now in hands of the Swiss justice and will be under inspection and investigation. The message posted on the homepage reads:
We all, both as former directors of the company and as individuals, make our deepest apologies to the many customers and suppliers that were patiently waiting for a refund or compensation. As BITMINE AG’s board, we have always acted in our best good faith, within the limits of our skills and in the interests of the company and, therefore, its customers.
Lost All the Company’s Share Capitals and Hundreds of Bitcoins
Bitmine AG says that the company wants to take the opportunity to make clear with everybody that the accusations on the forums are false. According to the firm it has lost all the company’s share capital and several hundreds Bitcoins in loans to the company ourselves. This is fully documented on the company registers.
The company also informs that all the information is not available to the relevant authorities for inspection. Nonetheless, the whole explanation shows just one point and that is that their insolvency, complete with a breakdown of costs versus income mean the customers would never get their hardware at all.
Though Bitmine AG claims that it was not a scam, not many customers who never got their hardware despite paying in advance claim it is full on scam. The company claims that out of the 3500 units that it sold and it got prepaid for, it has delivered to the customers more than 2000 units, all produced in its facilities.
Bitmine AG admits that even if some units were not delivered it still is a great achievement:
Let’s examine the above quote for a moment. Giving the benefit of the doubt, and rounding up to 2500 units paid for and shipped, that leaves 1,000 units paid for and never delivered, or nearly 30% of orders. There are very few businesses where this level of success would be considered good business, upstanding, or “not a scam.” Indeed, (a minimum of) three in ten people making purchases with Bitmine never received a thing.
To contact the reporter of this story: Deepak Tiwari at email@example.com