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Bitcoin Miner Aquifer Files for Chapter 11 Bankruptcy

(@mpmcsweeney) | Published on February 23, 2015 at 22:25 GMT
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Bitcoin mining company Aquifer LLC has filed for Chapter 11 bankruptcy protection.

According to court documents obtained by CoinDesk, Aquifer, also known as AQH, LLC, filed for Chapter 11 in the US Bankruptcy Court for the Northern District of California on 19th February.

The company claimed between $1m and $10m in assets, as well as between $1m and $10m in outstanding liabilities. The company has between one and 49 creditors, the filing stated.

Aquifer said in court documents that it expects to have enough funds on hand to repay unsecured creditors. The filing names a number of California-based vendors and service providers, as well as other creditors located in the United States.

Headquartered in Sunnyvale, California, Aquifer is one of several mining companies involved in MegaBigPower’s franchisee program. When the program was announced in the summer of 2014, Aquifer was described as a “strategic partner”. According to MBP, Aquifer was the recipient of more than 700 TH/s in mining power since the partnership began.

MBP owner Dave Carlson told CoinDesk that he was unaware of the bankruptcy filing and had been unable to communicate with the Aquifer team in the past month, adding that the hashing power the MBP mining pool had received from Aquifer dropped off roughly two weeks ago.

"My focus will be to attempt to recover my equipment from their location," he said.

A representative for Aquifer declined to comment.

The California bitcoin company has maintained a public profile in the past with appearances at recent bitcoin-focused events, including head of finance and operations Anthony Borough's participation on the mining panel at the North American Bitcoin Conference in January.

Aquifer is the second US-based bitcoin mining company to file for bankruptcy in 2015. Last month, CoinTerra filed for Chapter 7 bankruptcy protection amid a deterioration of its finances and a lawsuit filed by C7 Data Centers of Utah.

Aquifer’s bankruptcy filing can be found below:

Aquifer LLC Chapter 11 Filing

Image via Shutterstock

Aquifer LLCBankruptcy

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