Crash puts Bitcoin Miner in distress
The recent price turbulence is not without a trace on the Bitcoin miners. Falling prices, coupled with an aggressive expansion policy of the top dogs such as Bitmain, lead to ever narrower profit margins. As a result, NGDC and Chasqui Tech were forced to shut down two mining farms in the north of Sweden last week.
According to reports by the Swedish public broadcaster Sveriges Radio, the two US companies also left behind a veritable mountain of debt. As reported by Svergies Radio, power company Vattenfall NGDC has unceremoniously turned off the power after Miami-based Miner has failed to pay the utility bill for months. The outstanding amount is about 14 million Swedish kronor or 1.5 million US dollars.
Vattenfall has little hope of ever seeing the money again:
"Given the location, the prospects are [auf Ausgleich der Schulden, Anm. d. Red.] not so brilliant. We will see what to do ",
the station quotes a responsible person at Vattenfall.
Chasqui Tech, however, managed the feat of planning its mining farm in Kalix, Sweden, but never buying it. Now, the company owe the community the equivalent of around $ 50,000 in rental costs.
Chinese miners are also struggling
Meanwhile, the news portal Crypto News Review reported that even Chinese miners get into trouble. However, the unspecified mining farms would have only temporarily stopped operations. This should be seen as a short-term measure to avoid losses due to unprofitable mining.
Crypto-mining is becoming increasingly difficult. As CriptomonedaseICO reported, this year's hashrate has been rising steadily. On the one hand, this leads to higher competitive pressure among competitors and, on the other hand, to declining profitability of the business, with falling prices. As you can see now, many miners are no longer up to the current competitive conditions.
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