Norwegian bitcoin miner moves to Arctic Circle due to high electricity costs

Last Updated: 15 August 2022

The Norwegian company, Kryptovault AS, will be mining bitcoin near the Arctic Circle. Due to rising electricity costs in the country, they are moving to more northern regions.

Bitcoin Mining

Norway is a perfect place for bitcoin miners. Reportedly, 98% of its electricity comes from renewable sources. It is also cold there, which is an added bonus for cooling the mining facilities.

Kryptovault AS is planning to move most of its mining rigs to the coldest part of Norway. The company’s CEO, Kjetil Hove Pettersen, says that electricity prices there are 160 times cheaper than in the southern part of the Scandinavian country.

Hydropower is an important source of energy in Norway. It is 100% green and abundant. Bitcoin miners are, therefore, not bad for the environment, contrary to popular belief.

There is also a drawback: transporting the ASICs is quite expensive, Pettersen explains.

“The relocation project, of course, involves other costs and complications, but with the current circumstances, it is hugely important to do this.”

Energy prices

Due to water shortages, energy prices in the Oslo area have skyrocketed in the past two years. However, north of the city of Tromsø, electricity prices are still falling.

According to a study by Arcane Research, Norway currently accounts for almost 1% of the world’s computing power. Among others, Northern Data, Bitdeer, Bitzero and COWA are active in the country.

Bitcoin miners are also used to dry firewood and seaweed with the heat of miners.

There are also influential people who see the whole mining industry. Norway’s former climate and environment minister is a supporter. Sveinung Rotevatn already revealed that he has bitcoin. He found it to be a “good savings vehicle.”

  • Ivan Brightly

    Ivan Brightly is a leading cryptocurrency analyst and author with over 5 years of experience in the blockchain and digital asset space. He previously served as a senior analyst at a major cryptocurrency hedge fund where he led quantitative research and trading strategy development.

    Ivan holds a Master's degree in Finance from the London School of Economics and a Bachelor's in Computer Science from Stanford University. He is frequently invited to speak at fintech and blockchain conferences worldwide on topics spanning cryptocurrency trading, blockchain technology, and the future of digital assets.

    Ivan's commentary has been featured in several major finance and technology publications including Forbes, Bloomberg, and CoinDesk. He is considered one of the most insightful voices analyzing new developments in the cryptocurrency and blockchain industry.

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