Two Sweden based Mining Companies Disappears and Leaves Huge Debt in Their Wake

Two Sweden based Mining Companies Disappears and Leaves Huge Debt in Their Wake

mining companies

Based on a recent report, two Sweden based mining companies have reportedly disappeared without leaving any trace. One of these crypto mining companies left a hefty electricity bill of about $1.55 million in its wake.

Huge Mining Electricity Bill

U.S. Miner NGDC, one of the mining company was said to have used electricity worth about $1.55 million for mining before its sudden disappearance.

According to the report, before the sudden disappearance, NGDC power supply was cut off by Vattenfall, a Swedish electricity supplier. So in order to avoid paying this huge electricity bill, the company has moved its operations to an unknown location.

Based on a statement from Helena Ohlund of the Älvsbyn municipal council, all efforts by the power company as well as the local authorities to reach NGDC has been so far unsuccessful.

Also, based on a recent report, another mining company—Chasqui Tech, is owing to the Municipality of Kalix, Norrbotten county half million Swedish kronor ($55,000) in unpaid rental fees. The report made it known that Chasqui Tech initially had plans to establish a bitcoin mining farm in Kalix, Norrbotten County. However, it abandoned its plans and never set up operation in the area.

Likely Reasons Behind the Flight of Mining Companies

The Chief Executive Officer of the Node Pole, a data center development hub in Sweden, Patrik Ohlund has made some comments regarding why there is a sudden spike in the number of mining companies leaving Sweden. He made it known that he thinks that the current cryptocurrency bear market and a jump in Swedish electricity prices, could be blamed for this sudden flight.

The future of crypto Mining in Sweden is Bright

Ohlund also pointed out that there is about 50 large data center presently operational in the country. With this, he is of the notion that the future prospects of Sweden’s cryptocurrency mining industry are a bright one. As a result, there is nothing to be worried about, as those mining companies disappearing are not the type of company the country needs in the first instance. He further stated that he would not be surprised if the number of data centers operating in Sweden doubles sooner than expected.