According to a recent report, Kryptovault AS, a large-scale, Norway-based crypto mining company is set to relocate North of the Arctic circle. The company’s plans to switch base stem from surging electricity prices in Norway, a phenomenon that seems confined to the region.
Norway a Mining Hub
Over the past couple of years, Norway has evolved into one of Europe’s biggest mining hubs. In a recent study, analysis firm Arcane Research noted that Norway is responsible for about 1% of the global hash rate. What’s impressive is that the nation is nearly entirely powered by clean energy, making it an ideal environment for miners.
The Scandinavian nation embraces green policies that have seen it turn to sustainable power sources. Reportedly, Norway produces up to roughly 98% of its energy through eco-friendly systems. The nation hosts some major platforms such as Northern Data, Bitdeer, Bitzero, and COWA.
Kryptovault is one such company and it carries out its mining operations mainly using renewable energy. The company primarily utilizes hydropower to run data centers at two locations in Norway. However, the country has been experiencing a water shortage that has worsened in recent years.
Northern Energy Costs are Much More Affordable
In about 24 months, electricity costs in the capital have shot up significantly. As the authorities mull over their options to preserve local resources, Kryptovault is preparing for its migration. The majority of the company’s miners will move to the coldest regions in the nation.
Interestingly, energy costs have decreased in the northern city of Tromso even as they rose in other areas. This is the central motivator behind the crypto miner’s move. According to Chief Executive Officer (CEO) Kjetil Hove Pettersen, the south offers electricity prices 160 times more expensive than those in the north.
Another major appeal of a city like Tromso is the abundance of water sources in areas near the arctic circle. Of course, the move does have its disadvantages, Pettersen explained some of these later on. According to the CEO, the relocation will call for some hefty fees. An example of this is how Kryptovault will have to pay to move its mining equipment.
However, the company is prepared to accommodate whatever costs arise along the way.
The relocation project will, of course, add other expenses and complications, however, with the current conditions, it is an existential requirement to do this.”