Virginia Bitcoin Mining Operation Liquidates

Bitcoin (BTC) mining operation BCause Mining, located in the city of Virginia Beach in the United States, needs to liquidate its assets. In an article by Virginian-Pilot on October 9, it reported that the Bitcoin mining firm filed for bankruptcy earlier this year. And this week, a federal judge approved the motion to convert the filing from a reorganization to Chapter 7 liquidation.

In addition to that, they ordered BCause Mining to liquidate its assets, stop all operations, and lay off the firm’s 27 full-time and four part-time workers.

In January 2018, the now-defunct mining company got a $500,000 grant from the city of Virginia Beach. And this is to expand its operations to a local rented warehouse. Moreover, BCause pledged to invest as much as $60 million for the massive expansion. This might be the largest cryptocurrency mining operation in North America.

Julie Hill, a municipal spokeswoman in Virginia Beach, stated that the city will now think of filing a claim in bankruptcy court. They will try to recoup some of the money to pay out to the mining firm. Then, the city of Virginia Beach will become an unsecured creditor, meaning they will only address its claims once it deals with the whole secured claims.

Gains of Bitcoin and Altcoins

On Wednesday, Bitcoin continues to rebound, and its gains reached $400 in a few hours. On the other hand, altcoin boosted too in sync with BTC.

Furthermore, Bitcoin surged from an intraday low of about $8,200 up to its latest trading price near $8,600. And it displayed incredible gains of more than 5%. Similarly, most of the top 100 crypto coins are pumping in sync with BTC. Also, showing a record of major double-digit gains.

Meanwhile, Ether (ETH) followed suit and rallied in sync with most of its fellow altcoins. It had over a decent gain of almost 7%.