Norwegian bitcoin mining company – Kryptovault AS – is reportedly planning to move its operations north of the Arctic Circle. The relocation is motivated by the rising cost of electricity in the country, while the northern regions are still relatively spared by the crisis.
Over the past few years, Norway has emerged as a cryptocurrency mining hub for the European region due to its green policies. According to estimates, 98% of the country’s energy production comes from renewable sources.
Looking for a cheaper neighborhood
As reported by Bloomberg, Kryptovault AS intends to migrate most of its crypto miners to the colder part of Norway. The company’s CEO – Kjetil Hove Pettersen – said electricity prices there are 160 times cheaper than in the south.
It should be noted that Kryptovault AS almost entirely produces bitcoin with renewable energy, as 98% comes from hydroelectricity. This could be seen as another reason why the company decided to move north, as there are many water sources in the region near the Arctic Circle.
Despite these advantages, the transition also has its disadvantages. Pettersen explained that initially, the entity will have to pay significant expenses, including transporting machinery:
“The relocation project will, of course, add further expense and complication, however, with current conditions, it is an existential requirement to do so.”
Currently, Kryptovault AS operates data centers at two locations in southern Norway. Water scarcity there has been so severe in recent years that the government has begun to consider restrictions to protect domestic supplies.
Electricity prices in Oslo, on the other hand, have skyrocketed over the past two years, while costs in the northern city of Tromso have even fallen over the same period.
A recent study conducted by Arcane Research determined that Norway produces nearly 1% of the global hash rate and is powered entirely by renewable energy. Some of the major 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 many politicians around the world. One example is Norway’s former climate and environment minister, Sveinung Rotevatn.
Last year, he disclosed that he held an undisclosed amount of BTC, classifying the asset as a “well-suited store of value.” Talking about its main merits, Rotevatn argued:
“What might make Bitcoin so exciting is that it has some of the same properties. You cannot suddenly discover a ton of Bitcoin somewhere, giving a country huge reserves. It is evenly distributed, it grows slowly but steadily, and its supply is limited… Therefore, it is theoretically well suited as a store of value.
Binance Free $100 (Exclusive): Use this link to sign up and receive $100 free and 10% off Binance Futures fees for the first month (terms).
PrimeXBT Special Offer: Use this link to sign up and enter code POTATO50 to receive up to $7,000 on your deposits.