Iceland Cuts Electricity to New Bitcoin Miners

Iceland Cuts Electricity to New Bitcoin Miners

Iceland cuts power to new Bitcoin (BTC) miners

Iceland’s energy utility service will no longer accept new requests for power from Bitcoin mining companies after December 7.

Landsvirkjun, Iceland’s national electricity provider, has reduced the total amount of power it would offer to specific companies, such as aluminum smelters and Bitcoin (BTC) miners.

Due to a combination of challenges, including a failure at a power plant, low hydro-reservoir levels, and receiving electricity from an external provider, the island’s power utility has been obliged to limit energy allocations to southwestern Bitcoin miners and various industrial enterprises.

The country’s availability of geothermal energy, which is harnessed to generate a cheap and plentiful supply of renewable energy, has long attracted mining businesses. According to Landsvirkjun, any new requests for power from mining operations would not be obliged beginning from December 7 for an unknown amount of time.

The three primary Bitcoin mining businesses that have opened operations in Iceland are Canada’s Hive Blockchain Technologies, Genesis Mining, and Bitfury Holding.

Miners have been doing so much to realize the promise of environmentally friendly Bitcoin mining in Iceland for nearly a decade. Cloud Hashing relocated 100 miners to Iceland in 2013. HydroMiner GmbH, an Austrian business, raised $2.8 million in an initial coin offering (ICO) in November 2017 to deploy mining rigs at Icelandic power facilities.

Non-renewable energy accounts for less than 1% of total electricity generation in the country.

The distribution failure has harmed the country’s aluminum smelting industry the most. Aluminum prices increased 1.1 percent on December 7, 2021, to reflect a supply constraint caused by a recent jump in demand and the current power shortage.

Green blockchain initiatives have become popular around the world in this year, 2021. The energy-intensive Bitcoin mining was discussed by thought leaders at the COP26 summit in Glasgow, Scotland. The GloCha United Citizens Organization (UCO) for Climate Empowerment was launched at the meeting. It will use blockchain technology to help achieve climate change goals.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.