Cryptocurrency Miners Disappear In Sweden After Racking Up Major Energy Costs Leaving Bills Unpaid
In the Swedish county of Norrbotten, there have been a string of failures. For not one, but two cryptocurrency mining initiatives which set up in the region not too recently. These two companies, rather than going into administration and paying their bills, have simply disappeared into thin air, leaving unpaid bills as the only record that they were ever there.
In The Arctic Circle – Sweden
Being one of the most northern counties in Sweden, over half of the Norrbotten region lies within the Arctic Circle. Thanks to these [highly] cool conditions, cryptocurrency mining seems attractive and would, by extension; result in a highly successful venture for the region right? Well…
With the investment from crypto companies in the region, the municipalities of Älvsbyn and Kalix welcomed them in, but got something quite different to what they expected.
Off Goes The Power
In Älvsbyn, Facilities were recently set up for the purpose of mining Bitcoin in the region by the Miami based NGDC. While it enjoyed initial success and welcomes from the municipalities, it went on to suddenly cease its operations as of Autumn this year.
So what was the reason given for this abrupt change of course? The reason given was that the energy company, Vattenfall (Waterfall), cut off the electricity supply due to a non-payment of outstanding bills.
Vattenfall has applied for sequestration, closure, and bankruptcy for NGDC. This state of affairs was from a company that was less optimistic about its prospects of retrieving payment for what was left outstanding: which was a total of 14 million Swedish Kroner, which equates to $1.5 million.
The municipal council, which is the primary owner of the premises that was used by the NGDC during its short stay, had unsuccessfully attempted to contact the company, and remove its equipment according to news sources local to the event.
The one mark of solace for the local population is that the authorities in Älvsbyn didn't sustain any financial losses from the whole affair.
The municipal council, which owns the premises used by NGDC, has tried unsuccessfully to contact the company, to remove their equipment, according to local news sources. Still, at least the authorities in Älvsbyn didn’t suffer any financial loss.
A No Show?
Over 100 Kilometres to the east, nearer to the border between Sweden and Finland, the municipality is striving to recover more than half a million Kronor, which is $55,000 in unpaid rent on the property it occupied.
The company involved was one called Chasquitech which put forward their plans for a bitcoin mining operation in spring but failed to see its project materialize and even to start operations in the region.
Crypto mining companies in Sweden have, in general, faced a more than challenging time setting themselves up with any level of stability or strength due to local circumstances. Those being some of the drought conditions which occurred during the summer, subsequently forcing the price of electricity up as a result.
This factor was combined with a reduction to the value of Bitcoin within the same stretch of time, meaning that profits never managed to climb above lines where companies could make a strong profit off mining operations.
Patrik Öhlund, CEO of The Node Pole, still sees a bright future for the industry as a whole and cryptocurrency mining in Sweden. He believes that the number of data centers (at 50 at the moment) will only increase as time goes on: “Looking five years ahead, we would not be surprised if we see a doubling, upwards of a hundred,” he said.