January 6, 2019
It is with deep personal sadness and regret that I must inform you that CryptoGulch must close its business. Like many enterprises in the cryptocurrency industry CryptoGulch is going down amid the current “Great Depression” of cryptocurrency.
The continuing precipitous drops in cryptocurrency prices and in cryptocurrency mining rewards have buffeted CryptoGulch from all sides, from growth and maintenance of CryptoGulch’s customers to returns from mining to valuation of mining rigs to the ability to obtain outside investment to the value of the cryptocurrency we owned from mining or via customer payments.
Meanwhile, the advance payments that CryptoGulch has received from prospective mining rig hosted customers, which were to be coupled with outside investment, to continue to build the required additional infrastructure to expand CryptoGulch to the point of break-even has been exhausted before the company has been able to reach that point.
In hopes that the cryptocurrency market would turn back upwards I have dedicated my personal time, industry and capital to CryptoGulch and that has reached its limit. I have always put CryptoGulch and its customers first, never taking any distributions from CryptoGulch and never taking anything more than a sustenance level salary, and even that salary I have had suspended and not paid since June 15, 2018.
For customers with outstanding balances CryptoGulch will be unable to provide reimbursement at this time, if ever. I know that many of you will suffer economic loss as a result of the collapse of CryptoGulch and while I am deeply discouraged that this will be the case I will look for reasonable opportunities to mitigate your loss. But you should know that almost every resource I have has gone into the business, all of which evaporates with the business.
We have been informed by CryptoGulch’s electricity provider that electrical services will be terminated tomorrow. So, in order to protect the equipment of our customers we have disconnected their mining rig equipment and placed them in storage. CryptoGulch’s terms of service provide that on any termination of its services the customer must pay an uninstall fee plus the costs of shipping of the customer’s mining rig back to the customer. CryptoGulch will not charge the uninstall fee. However, CryptoGulch cannot bear the expense of shipping customer equipment to you, so any customer who has equipment with us may either make arrangements to physically pick up the customer’s equipment or work with us to arrange the shipping of the equipment to the customer at the customer’s expense. We understand that in the current environment the value of cryptocurrency mining rigs is low so if you do not wish to have your equipment returned please advise us that CryptoGulch may retain the equipment. If you do not contact us about your equipment within 30 days, we will assume you do not wish to have your equipment returned.
Any mining rig equipment that is retained by CryptoGulch will be available to us to use or dispose of at our discretion. Our current thought is that substantially any of the proceeds that might be realized by sale or operation of that equipment will be used to make what would be a small dent in satisfying the obligations of CryptoGulch.
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And a reminder of the Standard Hosting Terms last updated July 27, 2018.