Cryptocurrency Miners want to enter Norway and Sweden

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by | 11th April 2018 | 0 comments

It is no secret that cryptocurrency miners need a lot of electricity to cool their systems and power their servers. According to the Reuters News Agency, digital token miners are looking to enter Norway and Sweden. They hope to take advantage of those countries cheap hydroelectric energy sources and regional low temperatures. This will help to keep their systems cool at affordable prices.

Iceland has been, for some time now, Europe’s most popular country for miners of cryptocurrencies like bitcoin and Ethereum.

But at €0.065 per kilowatt hour in Sweden and €0.071 per kilowatt hour in Norway, power prices in those countries are less expensive than Iceland’s €0.08 per hour and well below the Eurozone average of €0.11 per hour.

This is good news for Sweden’s electric company Vattenfall and Norway’s electric company Statkraft. They are the two major utility companies in their respective countries. Right now, supplying electricity to cryptocurrency miners is only a small part of their current business. However, both companies see an opportunity here.

Mining digital tokens is very energy intensive. These companies use thousands of servers at a time. They need this to get the computing processing strength to generate tokens. That is done by solving extremely complex mathematical equations.

Miners of Cryptocurrencies use 130 Terawatts per Year

Miners of bitcoin, alone, will consume nearly 130 terawatt hours of energy in 2018. This is the entire energy consumption of the South American country of Argentina.

Olivier Roussy Newton, director and co-founder of Canadian group HIVE Block chain Technologies said that “we’re on a global hunt to secure as much power as we can.”  They started mining Ethereum in Sweden in January.

Hive Block chain said it was expanding energy capacity for its mining operations into Sweden to 17.4 megawatts. They have the capital to expand upwards to 26.8 megawatts by September 2018. In March, they purchased the data company Kolos Norway AS for $9.9 million. They also want to expand that company’s mining operations.

China’s Bitmain, the world’s largest bitcoin miner, has is currently running a mining center in Switzerland. Sources, familiar with the matter, say that they are currently looking into expanding into Sweden and Norway as well

Mark Collins, chief executive of CBH Consulting AG said that many “miners are keen to get into Norway and that includes Bitmain and other Chinese names.”

Bitmain has not commented officially on this matter. Nishant Sharma, the spokesman for that cryptocurrency miner, said they will announce when they are ready to expand further into Europe. Sharma is not aware of any “special plans” for either Norway or Sweden.

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