Ditching its customers, Swedish company KnCMiner has discontinued the sales of its Bitcoin mining equipments. Now, the company says it will focus on expanding its data centers to mine Bitcoins and solve similar complex algorithms. The decision by the company has sparked debate whether it is justified in doing this.
KnCMiner which has been setup to create truly ground breaking mining equipment specifically designed and tailored for the Bitcoin market says that it started facing problems when the Bitcoin price fell from $1,000 to $300, and customers who bought mining devices from KnCMiner started asking for refunds which triggered the company’s latest move.
Till now the company has been offering the equipment that were being used to mine. However, now KnC co-founder Sam Cole says that when the company does not have these customers to buy its hardware it becomes a different business model. According to him, it becomes much easier, much more open, and more honest.
He added that there’s still going to be $2 billion, at the current price, mined in the next few years. According to him that’s a lot of cash that’s up for grabs and the company is going to do its best to take a decent chunk of it. His company previously raised $14 m in venture capital and is looking for locations in Sweden and Iceland for data centers.
The Decision is for the Greater Interest of the company
Also, the company is eying 20% share in the Bitcoin mining market, which is 15% more than what it mines now. Also, KnC is planning to raise $50 m to build more data centers and develop new mining equipment. Nonetheless, the company which was created as a joint venture between two strong companies, ORSoC AB and Kennemar & Cole AB, expects new operation will be profitable.
The source from company claims that together the company combines different kinds of expertise into KnCMiner, which it believes is absolutely critical for a company offering any products and services to the Bitcoin industry. Kennemar & Cole founder is Sam Cole who has more than 20 years of expertise and global experience of bringing services and products to the market.
Now it has to be seen what would the company that promised that its foundation was to bring high performance hardware products, response be to its existing customers who may face some issues with their Bitcoin mining machines.
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