Bitcoin mining firm BCause has been ordered to liquidate its assets, according to a report<\/a> by The Vanguard Plot.<\/p>\n
BCause lost a Lawsuit of $1.9 against WESCO, one of its major vendors, in 2018. In that same period last year, it had to clear up an unpaid bill of $1.7 million owed to Dominion Energy, its electricity provider.<\/p>\n
In addition to these financial messes, BCause still has an unpaid due of $6.8 million to BMG Operation.<\/p>\n
These are bills accrued for hosting the firm. In Bcause\u2019 estimation, the total monetary claims it owes its creditors amount to $13.3 million.<\/p>\n
This means that if the firm becomes liquidated, its creditors will have to bear some of the loss.<\/p>\n
Most of the credits received from BCause were invested in mining equipment owned by other mining companies.<\/p>\n
This is where the crux of the situation lies. In most cases, the firm gives out almost $1 million monthly to make sure their machines are hosted.<\/p>\n
As the firm is battling with liquidation, Virginia Beach has embarked on a process to recoup its $500,000 grant invested in the mining firm.<\/p>\n
According to Julie Hill, who is the spokeswoman of Virginia Beach, they are considering filing a bankruptcy claim on Bcause to enable them to recoup some or all of the investment they made in grants.<\/p>\n
With all those claims hanging on the firm\u2019s neck, it is almost impossible that it will still continue its mining business.<\/p>\n
The question is not even the continuation of the business, but how to settle the long list of creditors hanging on its neck.<\/p>\n
As recently as October 9, there was a news report by Virginia-Pilot (a local news outlet) that a federal judge has acted upon the bankruptcy report filed by BCause Mining LLC. The firm has 27 part-time and full-time workers.<\/p>\n
The judge has ordered it to lay them off and liquidate its assets as soon as possible.<\/p>\n
Once the whole liquidation procedure is complete, WESCO will be among the first to receive its claim, since the company has a secured claim. Likewise, BCause is asking the court to approve the payment of<\/p>\n
In August this year, BCause opened up to the court that they intend to settle their creditors in installments rather than in bulk.<\/p>\n
According to the spokesperson, paying back their creditors could take between two and four years. The actual time will depend on how soon they can start up another enterprise.<\/p>\n
The problem with this idea is, the launch will require them to seek capital from another firm. Going by the firm\u2019s financial situation, it will be difficult to get a new investor for the capital they seek.<\/p>\n","protected":false},"excerpt":{"rendered":"