c 1 cryptocurrency mining RTX4RXZX Christinne Muschi

Cryptocurrency miners are moving to Sweden and Norway seeking cheaper electricity

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Companies can spend between $1,400 and $1,800 in electricity to mine just one bitcoin. That forces firms to search for places with cheap electricity to base their operations.

Published   |  Photo by Reuters/Christinne Muschi
c 1 cryptocurrency mining RTX4RXZX Christinne Muschi
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For that reason, Iceland is a popular destination for miners. It has cheap energy, at €8 cents per kWh, below the European average of €11 cents, and cold weather, which helps firms save with cooling.

c 1 cryptocurrency mining RTX4RXZX Christinne Muschi
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Sweden and Norway are also becoming popular bases. Temperatures are similarly cool, but electricity is even cheaper than in Iceland, at €6 cents per kWh in Sweden and €7 cents per kWh in Norway.

c 1 cryptocurrency mining RTX4RXZX Christinne Muschi
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Canadian group Hive started mining ethereum from Sweden in January, and American firm Bitfury started mining bitcoin from Norway in March. And more deals are expected.

c 1 cryptocurrency mining RTX4RXZX Christinne Muschi
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The largest miner of bitcoin in the world, China’s Bitmain is researching both countries, according to sources heard by Reuters. Bitmain recently opened a mining operation in Switzerland.

c 1 cryptocurrency mining RTX4RXZX Christinne Muschi
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Mining firms are also attracted by friendly tax codes (data centers are exempt from property taxes in Norway) and support from energy utilities (like Sweden’s Vattenfall).

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