According to reports, Kryptovault AS, a Norwegian bitcoin mining company, intends to relocate its operations north of the Arctic Circle. The decision to relocate was made as a result of the nation’s growing electricity prices, even though the issue has not yet significantly touched the northern regions.
Norwegian has developed into a hub for cryptocurrency mining in the European region over the past few years as a result of its green legislation. According to estimates, renewable energy sources account for 98% of the nation’s energy generation.
Norwegian – Searching for a cheaper location
As reported by Bloomberg, Kryptovault AS intends to migrate most of its crypto miners to the coldest part of Norway. The company’s Chief Executive Officer – Kjetil Hove Pettersen – said electricity prices there are 160 times cheaper than in the south.
It is important to note that 98% of the energy used by Kryptovault AS to manufacture bitcoin is renewable. Given the abundance of water sources in the area near to the Arctic Circle, this could be viewed as yet another factor in the company’s decision to go north.
Despite these benefits, there are drawbacks to the transition as well. According to Pettersen, the organization will initially be required to cover certain sizeable costs, such as the shipping of the machinery:
“The relocation project will, of course, add other expenses and complications, however, with the current conditions, it is an existential requirement to do this.”
Kryptovault AS now manages two data centers in southern Norway. There has been such a severe water shortage there in recent years that the government has begun to examine restrictions to protect home supply.
In contrast, the cost of electricity in the northern city of Tromso has actually declined over the past two years while it has skyrocketed in Oslo.
A recent study conducted by Arcane Research determined that Norway produces close to 1% of the global hash rate, and it is entirely powered by renewable energy. Some leading local players in the field include companies like Northern Data, Bitdeer, Bitzero, and COWA.
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