Norwegian miner to mine cryptocurrencies above the Arctic Circle

Kryptovault AS, a Norwegian company specializing in bitcoin mining, has announced plans to relocate its operations to the coldest part of Norway, beyond the Arctic Circle, due to the 160 times lower cost of electricity there and the availability of free water sources.

According to Kryptovault AS CEO Ketil Hove Pettersen, the company needs to reorganize its operations — due to the gas crisis, Norway is limiting electricity supplies and, accordingly, increasing its cost for businesses. It is worth noting that Kryptovault AS mines 98% of its HTS using renewable energy (cryptocurrencies are produced using hydropower) and only 2% using electricity.

In the north of Norway, the cost of electricity is 160 times lower than in the south, where the mining farm is currently located, and there are many free water sources, so Kryptovault AS will be able to operate as usual and save money. Among the disadvantages of such a move are the costs of transporting mining equipment and paying taxes.

I wonder if Kryptovault AS miners have paid attention to the U.S. Energy Information Administration’s study on the cost of electricity around the world, as analysts have recently identified the cheapest country for bitcoin mining. According to the study, mining 1 bitcoin requires 1,449 kilowatt hours (kWh) of energy — while one average American family consumes about 893 kWh per month. The cheapest country for bitcoin mining is Kuwait, where the cost of mining 1 BTC is $ 1393. Accordingly, miners can now make a profit of $ 23,215 (at the time of writing, BTC is trading for $ 24,608).