April 25, 2024

Coinmint mining company may close due to shareholder conflict

An ongoing dispute between two co-owners of the mining company Coinmint has led to one ofpartners filed for its closure.

One of the two partners of the cryptocurrency companyCoinmint has filed for termination of business due to a dispute with another partner. Coinmint's dissolution petition was filed by Mintvest Capital Ltd. with the CoinMint Living Trust Defendant. Each partner owns a 50% stake in the company.

Coinmint was founded in 2016.The company operates the largest cryptocurrency mining center in North America. Coinmint is leasing an abandoned aluminum smelter Alcoa smelter in Massena, New York, to operate its 435 MW data center.

In a petition for the dissolution of the company filed in courtDelaware states that the CoinMint Living Trust has taken "actions damaging the firm." The problem is the CoinMint Living Trust's actions, which led to the transformation at the Coinmint branch in Puerto Rico without the approval of Mintvest Capital Ltd.

The dissolution statement states thatMintvest proposed selling Coinmint to a private investment firm and dividing revenue in accordance with equal ownership. However, the second partner refused to accept the offer. In addition, the document notes that private joint-stock companies have shown interest in acquiring Coinmint and have already made three proposals for its purchase since August 2019, and over the past six months, the cost of Coinmint has decreased by 40%.

MinerUpdate suggests that the balance sheetCoinmint contains valuable assets, but the company's price may be declining due to the ever-decreasing prices of mining rigs that are listed on the company's balance sheet. Given that Coinmint mines several altcoins, the cost of ASIC miners decreased in 2019 along with their fall while the difficulty increased.

As the halving approachesrewards for Bitcoin miners, the cost of previous generations of ASIC miners, which are likely used by Coinmint, is also decreasing. However, the lease of the Massena plant and attractive electricity agreements — some of Coinmint's most valuable assets.

Recently, a dispute between company partnersescalated due to the closure statement, which noted that CoinMint Living Trust took action to remove Mintvest's responsible officer, Prieur Leary. However, Leary remains in his position because only the partner who appointed him can raise the issue of dismissal.

According to the document, Coinmint will become insolvent if the company does not receive investment or is not sold. The application is pending, with both sides awaiting a decision from the Delaware State Court.