Topic: Alydian bankrupt (Read 1861 times)

Yeah banks don't lend to VC firms.  If banks wanted that kind of risk they would just invest in startups, except they don't so they don't.

Yeah banks don't lend to VC firms.  If banks wanted that kind of risk they would just invest in startups, except they don't so they don't.

What losses are being subsidized?  The investors lost

No I exactly get the point of a corporation.  Privatize gains and subsidize losses.  Bankruptcy court should be illegal.  Suck up your own debt can quit trying to leech from others.  The sad part is that Peter probably considers himself a Libertarian.  What a hypocrite.

Um do you not get the concept of a corporation.  I am sure he does have more $50K in personal wealth.  What does that have to do with the price of tea in China?

The CORPORATION has $50K in assets and the CORPORATION has 3.6M in debt.  Baring proof of fraud on the part of employees (piercing the corporate shield) the assets of the employees of a corporation are not part of the bankruptcy of a corporation.  

That is kinda the whole purpose of a corporation.  The CEO never listed his personal assets, he wouldn't be expected to list his personal assets, the bankruptcy has nothing to do with his personal assets.

He has more than $50K I bet.  That is probably equipment.  He's probably hiding his BTC value from the court.  Hopefully it is pursued.

Why would he do that? He likes giving away his personal wealth?  It is a corporation.  Baring fraud on the part of the CEO the investors claim is with the corporation, which according to the report has $50,000 in assets for $3.6M in debt.

Maybe in the future they will make wiser investments.  Note it was a major VC firm it isn't like they aren't capable of due diligence.

I'm glad they failed.  Peter Vessenes is a jerk.  Alydian was trying to cater to "old money" hoping they would jump on board and squeeze the rest of us out for Peter's own selfish gain.

At the end of the day, I'm sure their debts can be paid off easily if they can draw the bankruptcy out for a while.  I'm sure Peter has more than enough BTC to cover the loss if the spot price goes higher.

Three months ago Coinlab, an up-and-coming Bitcoin incubator, announced its first spin-off company, Alydian. Yesterday the company filed for Chapter 11 bankruptcy.

The company, which aimed to offer outsourced Bitcoin mining by allowing users to buy mining rigs and host them at their facility, closed with less than $50,000 in assets and over $3 million in debt. Wrote the former CEO, Hans Olson, “Alydian has developed an enterprise-scale Bitcoin mining system over the past year and we are excited to announce our capabilities today. The system, based on our first generation 65 nm custom ASIC technology, will enable non-technical customers to participate in terahash and petahash-scale Bitcoin mining without worry or technical expertise. Alydian will begin at-scale operation and hosting in late August.”

In the interim period Olson seems to have been replaced by CEO Peter Vessenes who led the bankruptcy in Seattle.

“Coinlab is a bit of a black box, but it looks like they were attempting to pivot from exchange-enabler to a bitcoin incubator. Incubators are definitely viable in the Bitcoin space, but I’d argue the risk is almost greater here than other areas of disruptive tech,” said Adam Levine, Editor-in-Chief at LetsTalkBitcoin.com. “ASIC mining has gone from being a joke of an industry to a highly competitive meatgrinder. Business models are being smashed every week, it’s not surprising they decided to pull the plug.”

As of this writing the company page is still live and Coinlab and Alydian have not replied to requests for interviews.