Two mining companies with operations in Sweden have reportedly abandoned their facilities in the country’s northernmost county of Norrbotten. One of the companies, U.S. miner NGDC, appears to have suddenly fled from the area, leaving $1.55 million in unpaid electricity bills in its wake.
According to Sveriges Radio, Miami-based NGDC ceased operations in the municipality of Älvsbyn after having its power cut by Swedish electricity supplier Vattenfall. NGDC owes 14 million Swedish kronor ($1.55 million) to Vattenfall, with the company’s lawyer, Fredrik Sundin, stating that the utility is actively pursuing the matter. “In all judgments, the prospect does not seem so brilliant, but we will do what we can of course,” Sundin said.
Helena Ohlund of the Älvsbyn municipal council stated that the local authorities have been unsuccessful in their attempts to contact NGDC.
Increasing Power Costs Drive Mining Exodus
Another mining company, Chasqui Tech, has reportedly abandoned its plans to establish a bitcoin mining farm in Kalix, Norrbotten county. The municipality is now seeking half a million Swedish kronor ($55,000) in unpaid rental fees from the company.
Patrik Ohlund, the chief executive officer of The Node Pole, a data center development hub in Sweden, said that he believes several factors could be driving these sudden departures. He has speculated that the cryptocurrency bear market and a jump in Swedish electricity prices — partly caused by the past summer’s drought — have created “problems” for a number of mining companies with operations in the country.
However, Ohlund remains upbeat about the future prospects of Sweden’s cryptocurrency mining industry. He said that he “would not be surprised to see a doubling” in the number of data centers operating in Sweden. He estimated that there are already roughly 50 such facilities in the country at present.
Last month, London-based MGT Capital Investments also announced that it had entered into a hosting agreement that would see the company relocate approximately 6,300 S9 Antminers that are currently housed in Sweden to a facility in Colorado Springs. Stephen Schaeffer, the chief operating officer of MGT Capital Investments, stated that the company hopes to complete the move and recommence mining at full capacity “before the end of December.”
Do you think that mining companies will continue to leave Sweden? Share your thoughts in the comments section below!
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