Bitcoin Giant KNC Miner Files For Bankruptcy

“Due to the high uncertainty about Bitcoin halving coming in July, combined with continued rapid increase in competition from our competitors, so the company will be very difficult to meet its obligations,” the company’s co-founder and CEO in a statement.

“We knew there were risks of doing it here in Sweden. We were aiming towards the clouds, not on building a mediocre midsize business. We took the big investors and chances spirit. But it has not paid off. ” 

The company raised $3 million (28 million SEK) in December last year but has apparently still been forced to shut down. The money was used to build a new server center. With the new center, the company was able to make 80 quadrillion calculations per second. However, because of the bitcoin block reward halving, the increased capacity would not result in any substantial increase in revenue.

Sam Cole also highlights the increasingly fierce competition – and the Swedish energy tax.

In Denmark, for example, data centers pay about 0.5 cents per kilowatt hour – in Sweden, the figure is 19.2 cents per kilowatt hour.

“44% of our income goes to energy costs. If we had had that the rest of

Read more ... source: 247CryptoNews