A company providing cryptocurrency mining solutions in southern Norway is forced to migrate north due to rising electricity costs.
According to CEO Kjetil Hove Pettersen, KryptoVault AS is relocating its operations north to the Arctic Circle, where electricity is much cheaper.
Europe’s energy crisis has deepened in southern Norway as a dry spring drained many hydroelectric reservoirs needed for local power generation. The situation is different in the north of the country, where water is abundant.
According to Mr. Pettersen, the mining relocation project will obviously entail more costs and problems, but given the existing situation, there is an existential imperative to accomplish it. According to him, the south has a cost of electricity more than 160 times higher than that of the north.
According to Pettersen, the amount saved by the transfer will depend on how quickly and how much capacity the company can transfer. There are also other unknown considerations. According to him, the company is responsible for paying rent, energy and other costs, as well as owning the mining equipment and associated infrastructure for its customers.
Bitcoin polar mining in Russia
A Russian company, BitCluster, was already mining beyond the Arctic Circle in the Siberian city of Norilsk. After opening her farm in late 2020, she receives power at costs as low as $0.03 per kilowatt hour, according to the company’s website.