In just half a year ago term they entered 125 million in the investment round.
KNC Miner, called a loader of crypto currency bitcoin, has asked himself bankrupt, according to a press release from the company. “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 commitments,” said company co-founder and CEO Sam Cole.
Bitcoin-halving is a change that means that from June requires twice as much computing power to verify the transaction chain as before. This means that the number of Bitcoins that will be at each new block in which you will find is the half compared to before, and to be able to find the same amount of Bitcoins as required before then double the bet. KNC Miner, with data centers in Constance, is also very dependent on the Swedish electricity prices, which Sam Cole emerged as another bidragane cause of the bankruptcy. Data center in Sweden will pay 19.2 cents per kilowatt-hour, compared with, for example around 0.5 cents in Denmark.
“If the price had been higher and lower our costs, we would have passed us. Right now we can not influence these things, “said Sam Cole to Breakit. “We knew there were risks of doing it here in Sweden. We were aiming towards the clouds, not on building a mediocre midsize businesses. We took the big investors and chances spirit. But it has not paid off,” he says further.
as late as in 2015 took the KNC 125 million in a rights issue and has a total added SEK 220 million in venture capital. The ownership ranks include Creandum, GP Bullhound and Accel. There are also those who are now becoming the big losers when the bankruptcy petition is filed. Accel has invested over 83 million in the company, Creandum around 58 million.
The bankruptcy, however, affect other than the owners of the KNC. On Nasdaq Stockholm traded for a year bitcoin certificate KNC behind via sister company XBT Provider. Trading in the instruments was stopped by Stockholm Stock Exchange shortly after the clock 17 on Friday.
“The individuals who bought these instruments in the belief that they bought bitcoin is now the holder of the instrument can be completely worthless,” wrote Joakim Bornold, savings economist Nordnet, in a statement. “It also shows how vulnerable this type derivatives trading is to rogue operators”, he notes further.
According to a statement from the XBT affected, however the company is not the majority owner’s bankruptcy.
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