Bitcoin mining equipment developer Spondoolies-Tech has ceased operations this month, CEO Guy Corem revealed.
Israeli bitcoin mining equipment developer Spondoolies-Tech, a prominent bitcoin hardware manufacturer in recent years has, in a surprising announcement, revealed that it has shut down operations this month.
A social media post by Spondoolies-tech CEO Guy Corem read:
As of May 4, 2016, Spondoolies-tech has ceased operations.
It has been a great privilege to serve the Bitcoin mining community and especially our customers. We deeply appreciate the support and faith that you have placed in us and wish you success in your future endeavors.
The closure comes as a surprise, not long after a recent investment which saw bitcoin mining firm BTCS (formerly Bitcoin Shop) increase its stake in the Israeli mining equipment developer to 9.6% from 6.6% with $750,000. The former e-commerce retailer had originally invested $1.5 million in Spondoolies-Tech in May 2015. Subsequently, the Israeli firm also saw its endeavor to merge with BTCS gain approval from the country’s Office of the Chief Scientist (OCS), in February this year.
Notably, Spondoolies-Tech had even announced a revenue of $28 million in May 2015, for the previous year in 2014.
The drastic departure marks a remarkable turn of events for the mining hardware company which was seen among the most promising startups in the bitcoin industry.
Dissolved at Court After Lack of Payroll
According to a report from Finance Magnates , seven employees from Spondoolies requested an Israeli court to dissolve the company after being notified that the company could no longer afford to retain them, whilst denying their last salary settlement. Spondoolies suffered from a lack of creditors, despite the recent investment by BTCS which wasn’t enough.
The employees also sought the court to appoint a temporary liquidator in the hopes of finding a new investor or, alternatively, an acquisition of the firm or parts of it.
The reason cited in the report for the change of fortunes for the bitcoin mining hardware firm is competition with China-based bitcoin hardware developers, ultimately proving to be a curtain call for Spondoolies-Tech.
Featured image from Shutterstock.