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BitcoinXio
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Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Tue Feb 16, 2016 6:19 pm

The recent news of bitcoin mining company KnC Miners hasn't been good. Three days ago there was an attempted murder at KnC mining facility where one staff member brutally attacked the other. You can read the about that news when it broke here: https://www.reddit.com/r/btc/comments/4 ... en/czxwp8a

In addition, news from today in Sweden is saying that KnC just let go of twelve full time staff members, doing away with a fifth of their employees apparently due to Chinese mining competition, says KnC CEO Sam Cole. In the article which was just published, it says (Google translated):
One of Sweden's most hyped startups terminates a dozen full-time employees, confirms the company's co-founder and CEO, Sam Cole.

"We are forced to cancel dozens of people from our Stockholm office, our server rooms are not affected," he says.

As recently as a month ago, we reported that the KNC has raised $25 million (in Swedish Krona, SEK) in venture capital. In total, the company has received $245 million (in Swedish Krona, SEK) since its inception. Among the investors include, among others, Creandum and Accel.

The company engaged in hand to mine bitcoin themselves but also deliver a cloud service like other miners can rent space on.

According to Sam Cole redundancies due partly to the company encountered unexpected competition and partly due to the expected reduction in energy tax in Sweden dragged on.

Worth noting here is that the Swedish government actually has proposed a reduction of the tax. The delay, however, 2017.

"It is mainly from China competition will. There were players who invested $200-300 million (in Swedish Krona, SEK) in equipment. It hit us hard, "said Sam Cole.

Why you hired more staff, even though you knew that the tax situation was unclear?

"With the competition that previously we had been able to tax remained. But now it has become much tougher competition, so the two things together meant that we had to do away with some of the staff. In the end, it's about mathematics, "he says.

Source: http://www.breakit.se/artikel/2692/ett- ... -knc-miner

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Re: Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Tue Feb 16, 2016 6:33 pm

Ignoring competition from the countries with the cheapest energy and labour costs when it comes to mining was just stupid.

The story gets funnier knowing that they expected the .gov to be reliable and lower energy prices.

I wonder if they calculated with the coming halving?

#EPICFAIL

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Re: Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Wed Feb 17, 2016 1:58 am

This guys really did a fail. First they made me money - now because of them im at a loose.

They lost my controller and i have 4 useless cubes for Neptune.
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Re: Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Wed Feb 17, 2016 2:44 am

Moving to an area with cheaper electricity must have been unfeasible?
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Re: Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Wed Feb 17, 2016 4:51 am

Moving to an area with cheaper electricity must have been unfeasible?
Of course not. You could put a lot of asic machines in a 40 ft container. And shipping is cheap just ask the baltic dry index.

Knc owns their datacenters so that would be a write off but if your servers make money in one place and not in another you move them all the same.

I have heard that a lot of Chinese miners get subsidised power. May or may not be true. If so it is hard to compete.
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Re: Update to KnC Miner recent issues: Attempted Murder and now 12 employees fired

Wed Feb 17, 2016 5:11 am

Moving to an area with cheaper electricity must have been unfeasible?
Of course not. You could put a lot of asic machines in a 40 ft container. And shipping is cheap just ask the baltic dry index.

Knc owns their datacenters so that would be a write off but if your servers make money in one place and not in another you move them all the same.

I have heard that a lot of Chinese miners get subsidised power. May or may not be true. If so it is hard to compete.
I have heard (and would take it with a grain of salt) that some miners with ties to power may not have to pay for electricity at all, or have to pay a tiny fraction compared to what KNC would be paying.
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