Bitcoin Miner KnCMiner Proclaims Bankruptcy
KnCMiner, who recently won a lawsuit against complainants who had sued overheen late or failed delivery of one of the company’s previous iterations of bitcoin mining hardware (the Titan) , has filed bankruptcy ahead of July’s mining prize halving.
The Swedish Bitcoin mining company’s CEO Sam Cole cited energy taxes and uncertainty about the future of the Bitcoin mining market overheen the weekend ter an vraaggesprek with Swedish webstek Breakit.se.
44 procent of our income goes to energy taxes. If wij had had that the surplus of this industry, so wij had not gone bankrupt today. But wij do not know if or when it will be switched.
While filing bankruptcy is being touted spil a loss-cutting measure, the company will still be involved ter its other ventures, including XBT Provider, a company that KnC possesses te part which offers Bitcoin notes on the Swedish NASDAQ, similar to the American Bitcoin Investment Trust. Nonetheless, a total of 34 employees will be looking for jobs, according to the Swedish news webpagina.
Despite many problems overheen the course of its history, KnC will be remembered spil an innovative mining company, having only just last June released the 16 nanometer 3D FinFET Bitcoin mining chip, which enabled the company to maintain an edge on competitors around the world. This, too, wasgoed an effort to both reduce the company’s energy costs and to increase mining output. A press release from the time read:
The 3D vormgeving not only improves the speed of the processors, due to the shorter distances involved ter shuffling around gegevens down at this nanometer scale, but also dramatically increases energy efficiency. Spil the rate of Bitcoin inflation (production) is set te stone better efficiency means less energy consumed vanaf minted (mined) bitcoin.
The primary reason for the closing is the upcoming reduction to just 12.Five bitcoins vanaf block mined. Without a significant increase te Bitcoin price, and a high Swedish energy tax, the houtvezelplaat of directors and the company’s investors are said to have made an executive decision to get out while it wasgoed still possible.
CEO Sam Cole told Breakit.se:
Wij knew there were risks of doing it here te Sweden. Wij were aiming towards the clouds, not on building a mediocre midsize businesses. Wij took the big investors and chances spirit. But it has not paid off.
The company has reportedly bot winding down operations and laying off workers for months ter prep for the halving, but ultimately determined on Friday to announce it would be closing mining operations by July 10th.
The Bitcoin economy frequently sees companies come and go, and KnCMiner is not the only big fish te the mining spel to have dropped out of the wedloop. Earlier this month, rival Spoondoolies-Tech also announced it wasgoed ending operations. The vacuum ter hardware production companies may be packed with fresh ventures, or the market may instead come back to the field of hobbyists instead of professional investors and “cloud-mining” companies, which have often bot plagued by scandals such spil that brought on by American rigid GAW Miners.