Open letter from the former BITMINE AG management.


We are sorry to announce that on the 20th of May 2015 at 9:00, BITMINE AG has been officially declared bankrupt from the local competent court of Bellinzona.

It was publicly known that BITMINE AG was in a difficult situation from several months, but despite our biggest attempts to save the company by restructuring its product and services and seeking for new investments, all without success, left us no other chance than the road to bankruptcy. The accounts, assets and all company documents are now in hands of the Swiss justice and will be under inspection and investigation.

We all, both as former directors of the company and as individuals, make our deepest apologies to the many customers and suppliers that were patiently waiting for a refund or a compensation. As BITMINE AG’s board, we have always acted in our best good faith, within the limits of our skills and in the interests of the company and, therefore, its customers.

We also want to take the opportunity to make clear with everybody that the accusations on the forums are false, we as first have lost all the company’s share capital and several hundreds bitcoins in loans to the company ourselves. This is fully documented on the company registers and is now available to the relevant authorities for inspection.

Why did BITMINE AG go illiquid and eventually bankrupt? The answer to this question can be, in our opinion, divided in the three major issues that affected BITMINE AG:


The most often asked question is: where is my money gone? Why weren’t you simply able to pay back everybody?

Let us expose the financial figures to answer this question. BITMINE AG has sold in 2013 and 2014 a gross total of 12.1M CHF of products in various currencies and forms (Fiat and Bitcoin). Below is a summary of where this money has been paid to and is taken as an excerpt from the company’s official balance sheets and financial records, hence fully documented (the numbers are rounded for reading convenience).

  1. 8M paid to Innosilicon for development, masking and production lots of CoinCraft A1 chips.
  2. 2.1M paid to major suppliers of electronic components, heatsinks and casings (like Digi-key, Future Electronics, etc.).
  3. 0.7M paid for logistics (UPS, DHL, etc.).
  4. 0.7M paid to IceMine for the hosting fees of our cloud mining service.
  5. 0.6M paid as salaries to the production, management, engineering and support staff (totaling 18 people).
  6. 0.4M lost in Mt.Gox’s bankruptcy.
  7. 1.4M refunded to customers.
  8. 0.5M other running expenses such as rentals, travel expenses, legal expenditures, accounting, marketing and advertising, fuel, etc.


With a grand total of 14.4M CHF you may be wondering why this is actually higher than the above-mentioned sales volume. Just remember to add 1M share capital, 0.8M of loans with third parties and 0.6M of self-mined bitcoins in our operations in Iceland. If this last number may seem low to you, please remember that most of the miners in Iceland were offered as compensations to former customers through, leaving us only the smallest part of profits for our own operation.

The second most asked question is whether we were a scam or not. We were not because we have actually delivered a significant amount of our products. Despite all the above mentioned problems, out of the 3500 units that we sold and we got prepaid for, we have delivered to our customers more than 2000 units, all produced in our facilities.  There is a full photographic documentation of our production facility, happy customers picking up their miners and pallets full of miners being picked up by the freight company for shipping.

We acknowledge that this will not bring back your money, but hopefully it will give you an honest view on the reasons why it had been lost.



The BITMINE AG board of directors