Kryptovault AS, the renowned Norwegian bitcoin mining firm, has reportedly decided to move its operations beyond the Arctic Circle.
According to a recent report by Bloomberg, Kryptovault AS is planning to migrate most of its mining operations to the coldest part of the country. Kjetil Hove Pettersen, the CEO of the company, said that electricity prices in the northern region of Norway are 160 times cheaper than in the South.
Norway has developed into a hub for crypto mining in the European region over the past few years as a result of its green policies. According to a recent report by Arcane Research, the country generates about 1% of the world’s hash rate and uses only renewable energy sources. Moreover, renewable energy sources account for 98% of the nation’s energy generation.
Why is Kryptovault AS shifting to the north?
Kryptovault AS’s 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.
It is important to note that 98% of the energy used by Norway’s largest Bitcoin miner to manufacture bitcoin is renewable. As TheCoinRise reported, Kryptovault AS recycles the hot air generated by the mining operations and uses it to dry off chopped wood at the Honefoss Bitcoin mining complex. Given the abundance of water sources in the area near the Arctic Circle, this could be regarded as yet another factor in the company’s decision to go north.
Despite these benefits, there are drawbacks to the shift as well. “The relocation project will add other expenses and complications; however, with the current conditions, it is an existential requirement to do this,” Pettersen said of the initial considerable costs the company will incur, including the shipping of the machinery.
Kryptovault AS now manages two data centers in southern Norway. There has been such a severe water shortage there in recent years that the administration has begun to examine restrictions to protect domestic 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.
Original Source: https://thecoinrise.com/kryptovault-as-decides-to-shift-to-northern-norway-to-cut-energy-costs/
Author : Anisha Pandey