Crypto Mining Companies in Sweden Vanish Leaving Huge Utility Bills

Crypto Mining Companies in Sweden Vanish Leaving Huge Utility Bills

A cryptocurrency mining company that was based in Norrbotten the northernmost region of Sweden has closed down and left leaving behind a huge utility bill. U.S Miner NGDC was in operation in Norrbotten and had its power cut out after accumulating a huge debt.

According to Vattenfall the utility company that was supplying power to NGDC the mining company owes them 14 million Swedish Kronor which loosely translates to 1.55 million USD. But instead of the firm paying its dues they closed shop and left without a trace.

“We have tried our best to get into contact with the firm, but our efforts have proved to be futile” Helena Ohlund Älvsbyn municipality council. NGDC was occupying the municipality premises. On the other hand, the Utility lawyer said;

“We are keenly following on the matter to get the debts paid, but in all judgments, the prospect doesn’t look so brilliant but rest assured we will do our best.”

Other firms that walked out of Sweden

Apart from NGDC, Chasqui Tech which had set plans in motion to set up a bitcoin mining farm in Norrbotten County in Kalix but pulled out. Although Chasqui Tech had not installed its mining machines, it already had rented out premises for its farm from the municipality. But with Chasqui Tech pulling out of the project the municipality is seeking to have fees for unpaid rent. The renting fees are half a million Swedish kronor which is $55,000. The plant was to start operating in spring. Further on MGT Capital investment from London has set plans in motion to move its 6,300 S9 Antiminers to Colorado Springs. The announcement was made after MGT had signed hosting agreements to relocate its miners.

“We hope to finish the relocation on time before December and resume operations immediately at full capacity.” Stephen Schaeffer MGT Capital Investment Chief Operation Officer.

According to Patrik Ohlund CEO of The Node Pole a data center development hub in Sweden, two things might be causing crypto mining farms to close shop in Sweden. The first one is the rising electricity charges caused by the drought in the past summer while the other is the cryptocurrency bear market. But Ohlund is optimistic that the current situation might come to pass. According to him, there are around 50 data centers operational in Sweden, but the number might double up.