The Norwegian bitcoin mining company – Kryptovault AS – is reportedly planning to move its operations north of the Arctic Circle. The move is prompted by the rising electricity costs in the country, while the northern areas are still relatively unaffected by the crisis.
Over the past few years, Norway has become a cryptocurrency mining center for the European region due to its green policy. According to estimates, 98% of energy production in the country comes from renewable sources.
Looking for a cheaper area
As reported by Bloomberg, Kryptovault AS intends to migrate most of its crypto miners to the coldest part of Norway. The company’s managing director, Kjetil Hove Pettersen, said that electricity prices there are 160 times cheaper than in the south.
It is worth noting that Kryptovault AS produces bitcoin almost exclusively with renewable energy, as 98% comes from hydropower. This can be considered another reason why the company decided to move north since there are many water sources in the region near the Arctic Circle.
Despite these advantages, the transition also has its downsides. Pettersen explained that the company initially has to pay some significant expenses, including transport of the machinery:
– The relocation project will of course entail other expenses and complications, but in today’s conditions it is an existential requirement to do this.
Kryptovault AS currently operates data centers at two locations in southern Norway. The water shortage there has been so significant in recent years that the government has begun to consider curbs to ensure domestic supplies.
Electricity prices in Oslo, on the other hand, have skyrocketed in the past two years, while costs in the northern city of Tromsø have even decreased in the same period.
A recent study by Arcane Research determined that Norway produces close to 1% of the global hash rate, and that it is entirely powered by renewable energy. Some leading local players in the field include companies such as Northern Data, Bitdeer, Bitzero and COWA.
The former climate minister is a HODLer
Over the years, bitcoin has become an attractive investment tool for several politicians around the world. One such example is Norway’s ex-climate and environment minister Sveinung Rotevatn.
Last year, he revealed that he holds an undisclosed amount of BTC, classifying the asset as a “suitable store of value.” Talking about the main benefits, Rotevatn maintained:
“What can make Bitcoin so exciting is that it has some of the same characteristics. You can’t suddenly discover a lot of Bitcoin somewhere, giving a country huge reserves. It’s spread out evenly, it’s growing slowly but steadily, and has a limited supply… Therefore, it is theoretically well suited as a store of value.”
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