Bitwise Industries files for bankruptcy in Del. federal court

The filing comes one month after the company’s financial collapse.

One month after furloughing its entire 900-person workforce, Bitwise Industries has filed for Chapter 7 bankruptcy.

The failed Fresno-based tech and real estate filed for bankruptcy in a Delaware federal court on Wednesday. 


The big picture: Bitwise’s bankruptcy filing reported $252.03 million in total financial liabilities – $212 million from the main Bitwise Industries company while the rest from its other corporations, including Alpha Works Technologies, LLC and Bruce’s Bagels, Beverages and Bites, LLC. 

  • The company reported that $12.7 million of the liabilities is secured by property, and over $239 million is for nonpriority unsecured claims. 
  • Bitwise also reported $175.51 million in assets, which includes a cash on hand amount of $635. The company’s assets also include a $167,325 certificate of deposit with Central Valley Community Bank and a standby letter of credit with US Bank for $140,250. 
  • Court documents reveal that Bitwise owes an undetermined amount of taxes in Alabama, Florida, Hawaii, Indiana, Nevada, New York, Ohio, Texas, Virginia, Washington and Wyoming. 

Go deeper: Over 1,000 creditors are listed in the filing, including the Central California Food Bank, the Central Valley Community Foundation and the Fresno Chaffee Zoo. 

  • 906 Ventures, LLC – a company tied to the Walton Family of Walmat – is the largest creditor in the filing at $10 million, as well as unliquidated amounts. 906 Ventures has a $15.5 million claim, according to the filing. 
  • The filing also lists employees that Bitwise owes reimbursement to, including $53,217 for former co-CEO Jake Soberal and $33,496 for former co-CEO Irma Olguin. 
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