Bitcoin mining machine manufacturer Spondoolies goes bankrupt

Spondoolies-Tech is an Israeli bitcoin mining machine company dedicated to the development of bitcoin mining equipment. Spondoolies-Tech has been gaining momentum in recent years, but its recent decision has surprised everyone. CEO Guy Corem revealed that the company has now ceased operations.

Guy Corem said in an interview with a media outlet:

As of May 4, 2016, Spondoolies-tech ceased operations.

It is our great honor to serve the Bitcoin mining community and especially our customers. We sincerely thank you for your support and trust. We wish you all the best in your future endeavors.

Spondoolies-tech’s mining equipment has long been regarded as an industry benchmark. Their equipment is not only well-known, but also operates efficiently.

This closure is surprising. Earlier, BTCS (Bitcoin Shop) announced that it had bought Spondoolies-tech's shares again for 75万美金, increasing its shareholding from the original 6.6% to 9.6% . In May 2015, BTCS (Bitcoin Shop) invested another 150万美金in Spondoolies-tech. Then, in February 2016, with the approval of the Office of the Chief Scientist of Israel (OCS), Spondoolies-tech announced a merger with BTCS (Bitcoin Shop).

What’s more, Spondoolies-Tech just announced its 2014 revenue in May 2015, which was as high as 2800万美金.

Spondoolies-Tech was a promising company in the Bitcoin industry for the mining hardware industry. Its sudden departure should not be underestimated.

Reasons for Spondoolies-tech's closure

According to Finance Magnates, Spondoolies had already owed its employees a month’s salary. Seven of the employees found that the company was unable to pay their salaries, so they took Spondoolies to court and demanded the dissolution of the company. In fact, Spondoolies had already fallen into a serious debt crisis, and even with the BTCS (Bitcoin Shop) investment, it could not fill this bottomless pit.

At the same time, Spondoolies' employees are applying to the court for a temporary asset liquidator, hoping to find new investors for the company or find a suitable company to acquire Spondoolies.

The report mentioned that Spondoolies eventually faced bankruptcy because it was competing with Chinese Bitcoin mining machine developers.

Original article: https://www.cryptocoinsnews.com/bitcoin-mining-developer-spondoolies-shuts/
Author: Samburaj Das
Compiled by: Wendy
Source (translation): Babbitt Information (http://www.8btc.com/spondoolies-shuts)