Founded in 2013, Swedish bitcoin mining hardware firm KnCMiner has filed for bankruptcy today. Its parent company, KNC Group, along with six other subsidiaries, have been placed into receivership under Nils Åberg, as reported by CoinDesk.

According to report by Swedish Startup Space, a division of Sweden-based news service BREAKIT, the KnC Group board of directors took the decisions to close the company due to increasing competition from miners in China, as well as the upcoming bitcoin block reward halving in July, which will make a big dent in miner’s rewards.

Sam Cole, KnCMiner Co-founder and CEO, explained:

“Due to high uncertainty regarding the bitcoin block halving that occurs in July, in combination with a continued rapid capacity expansion from our competitors, the company is very unlikely to be able to fulfil its obligations past July. The board therefore took the decision to take the company voluntarily into receivership.”

The Swedish mining company was one of the most recognized names in the digital currency industry, having raised $14 million in a Series A funding round in 2014, and another $15 million in a Series B fundraiser in 2015, with participation from famed Swedish investors Martin Wattin.

Last summer, the company unveiled its 16nm bitcoin mining chip, which featured a 3D FinFET design. But despite the heavy infusion of capital and groundbreaking technological advancements, the firm has been unable to keep up with the rapidly-growing Chinese bitcoin mining industry.

KnCMiner was also embroiled in quite a bit of controversy. In February of this year, an employee at one of the company’s mining facilities in Sweden, stabbed a co-worker in the chest with a knife. Additionally, the company won a lawsuit in Sweden this week that related to the KnC Titan, a litecoin mining device, which consumer claimed was delivered late and had various technical problems. However, the company still faces another class action suit by disgruntled customers in the US, which is currently making its way in California courts.

In an interview with CoinDesk, Sam Cole claims that the board’s decision to close the company has nothing to do with the lawsuits.

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