BUTTE — A cryptocurrency mine in Butte is back in operation after being shut down following the arrest of its majority owner on charges of a $722 million cryptocurrency investment Ponzi scheme.
Kevin Washington, a minority owner, along with operator Rick Tabish went to court to have a receiver appointed to run CryptoWatt.
Early Sunday, the power was turned back on and more than 35,000 servers in seven buildings gradually came to life, performing calculations that are rewarded in Bitcoin payments. CryptoWatt has over 30 employees.
Tabish told The Montana Standard he negotiated a lower-priced power contract than the company had before it shut down.
Washington and Tabish are still looking to raise $45 million to purchase more efficient and productive servers. The investment must be made within the next couple of months. In May a “halving” event written into Bitcoin’s underlying code means cryptocurrency production will automatically be cut in half.
On Monday, a Bitcoin was worth nearly $8,900.
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