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Proposed Crypto Mining Ban in Norway Fails to Gain Support in Parliament

13/05/2022 by Idelto Editor

Proposed Crypto Mining Ban in Norway Fails to Gain Support in Parliament

A push to prohibit the energy-intensive proof-of-work mining of cryptocurrencies in Norway has been rejected by the majority of lawmakers. The ban had been suggested by the far-left Red Party which also didn’t win backing to raise an electricity tax for crypto miners.

Norway Will Not Ban Bitcoin Mining


The parliament of Norway has considered and voted against a draft law banning the minting of digital currencies based on the proof-of-work concept. The legislation, which was proposed by the communist Red Party in March, was supported only by two other leftist parties, SV (the Socialist Left Party) and MdG (the Green Party).

“We are obviously disappointed with the majority here,” Red lawmaker Sofie Marhaug told the E24 news portal. She added that the Norwegian society must determine its priorities regarding power usage. Her party says bitcoin mining is extremely energy-intensive and insists on putting an emphasis on the needs of other industries and climate change goals.

However, as Marhaug pointed out, the majority in the Storting, Norway’s legislature, wants to prioritize the market, and “give the bill to Norwegian electricity consumers.”

The Red also failed to win support for a proposal to revise the electricity surcharge for mining data centers, accusing the Labor Party (Ap) and Centre Party (Sp) of breaching a pre-election promise. The two parties had announced they would seek a full electricity fee for mining farms.

While households, many businesses, and the public sector currently pay 0.15 kroner (approx. $0.02) per kilowatt-hour of spent electricity, the industry, including data centers, enjoys a reduced levy of just 0.0055 kroner per kWh.

In February, the Norwegian government said it will try to avoid imposing a crypto ban, but made it clear it was considering various measures regarding the electricity consumption in the sector. In November, Norway admitted it’s mulling over ways to limit the environmental impact of bitcoin minting and may support a Swedish proposal for a European ban on proof-of-work mining.

“In a time of energy scarcity and challenges with cutting emissions, it is particularly harmful that power is wasted only to enrich individuals rather than being used for socially beneficial purposes,” the three leftist parties said. However, the parliamentary majority has objected to the politically motivated discrimination against mining data centers.

What do you think about the debate in Norway on the future of the crypto mining industry? Share your thoughts on the subject in the comments section below.

Filed Under: ban, Bitcoin, bitcoin-mining, crypto, crypto miners, crypto mining, Cryptocurrencies, cryptocurrency, Electricity, Energy, English, FEE, Law, Legislation, Mining, News Bitcoin, Norway, norwegian, parliament, power, prohibition, proof-of-work, surcharge, Tax

Norwegian Bitcoin Mining Ban Was Struck Down

13/05/2022 by Idelto Editor

A bill banning bitcoin mining, authored by the communist party in Norway, was struck down by a majority vote in the Norwegian parliament.

  • A bill seeking to ban energy intensive mining for cryptocurrencies like bitcoin was struck down by the Norwegian parliament on May 10.
  • The communist Red Party who authored the bill was supported by both the Green Party and Socialist Left party.
  • The minority also attempted to create an electricity tax for energy intensive cryptocurrency miners.

A Bitcoin bill seeking to eliminate energy intensive cryptocurrency mining was rejected in Norway with a majority vote passed by the Norwegian parliament on May 10, according to a translated report from local newspaper E24.

The proposal surfaced earlier this March by the Red Party (Rødt) which formed in 2007 from a merger between the Red Electoral Alliance and the Workers’ Communist Party. The Red Party outlines one of its primary goals as achieving a classless society, and was supported by the Socialist Left Party and the Green Party.

“We are obviously disappointed with the majority here. In the future, we will electrify large parts of society. If we do not want to carpet Norwegian nature with wind power, we must actually prioritize what the power is to be used for,” Rødt’s Sofie Marhaug said to E24.

Marhaug continued to cite a need to prioritize energy usage through what would be standard central planning for far-left political parties. In fact, at one point the Rødt party attempted to charge bitcoin miners a fee on-top of standard energy market prices.

Ordinary households, companies and the public sector pay an electricity tax of $2.51 per kilowatt hour, the industry has a reduced electricity tax of around $0.07 per kilowatt hour.

“But it seems that the majority in the Storting will leave the priority to the market, and give the bill to Norwegian electricity customers,” Marhaug reportedly said.

The majority on the other side of the matter reportedly said that it is “in principle questionable to discriminate against data centers on the basis of a politically defined societal benefit.”

Those against the ban discussed a lack of confidence in authority reportedly stating “It is no coincidence that cryptocurrency experienced a particular upswing in the wake of the financial crisis in 2008, when confidence in national and international banks and financial institutions was at a bottom level.” 

Filed Under: ban, Bitcoin, Bitcoin Magazine, English, Markets, Mining, News, Norway

Bitcoin Mining Around The World: Norway’s Outsized Presence Relative To Its Size

20/04/2022 by Idelto Editor

What makes this Arctic outpost so attractive to bitcoin miners, considering the country’s tiny geographical size and small population?

The below article is part of a larger series on Bitcoin mining around the world compiled by the team at Arcane Research.

This is the second article in a series describing the bitcoin mining industry in various countries around the world. The first article covered Georgia, and I now do a similar analysis on Norway. Coming from Norway, I have first-hand knowledge of the country’s bitcoin mining industry. Also, I work for Arcane, which has a mining operation in Norway.

I will explain why the bitcoin mining industry is flourishing in Norway, focusing on the power market and regulatory environment while also providing an overview of all the mining operations in the country.

A Large Mining Industry Given The Country’s Small Size

We should first find out how big Norway’s bitcoin mining industry is. I will provide a couple of existing estimates before coming up with my own numbers.

Cambridge’s Bitcoin Mining Map, which estimates the hashrate share of each country, gives Norway 0.58% of Bitcoin’s hashrate. Multiplying this share with their 15.6 GW estimate for the Bitcoin mining network’s total power demand gives Norwegian miners a power draw of 90 megawatt (MW), assuming their hardware has the same power efficiency as the network average.

CoinShares also estimated the size of Norway’s bitcoin mining industry and found it having 66 MW of installed power. While Cambridge’s top-down methodology used data from four mining pools to estimate the geographic distribution of miners, CoinShares applied a bottom-up procedure to identify all the mining facilities in each country.

Similar to CoinShares, I did my best to map out all the mining facilities in Norway and identified 120 MW of current bitcoin mining operations in Norway, which you can find on the map below. This power draw, multiplied by Сambridge’s estimate for the Bitcoin mining network’s total power demand, means Norwegian bitcoin miners produce 0.77% of Bitcoin’s hashrate.

Who Mines Bitcoin In Norway?

Generating almost 1% of Bitcoin’s hashrate, Norwegian miners are not the biggest but still important contributors in securing the network. Who are they?

Mining facilities in Norway. Source: Jaran Mellerud.

The industry consists of some local and several large international companies. Local players include Kryptovault and Arcane Green Data, while Northern Data, Bitdeer, Bitzero and COWA are among the larger global companies.

You can read more about each facility in the appendix at the bottom of the article.

A Green Oasis Of Renewable Energy

Now we will start exploring what attracted all these miners to Norway.

Mining is an energy-intensive industry under heavy public pressure regarding its carbon footprint. Therefore, a top priority for miners is powering their operations with renewable energy.

With its mountainous terrain and wet climate, Norway is made for hydropower. The buildout of hydroelectric power stations started at the end of the 19th century. Since then, hydro has been Norway’s primary source of electricity, giving the country an abundance of cheap, reliable and green power.

Electricity generation by source in Norway. Source: NVE.

In a typical year, 88% of electricity generated in Norway comes from hydro and 10% from wind. Except for a 2% share of natural gas powering the Norwegian offshore oil shelf, Norway is powered by 100% renewable energy, making the country attractive to miners who want to mitigate their carbon footprint.

Things look great here and now, but how will electricity generation in Norway develop in the coming years?

Norway has massive potential for new hydropower development, but getting development permissions has gotten harder. NVE (Norwegian Water and Energy Authority) estimates that until 2040, only 11 TWh of new hydroelectric generation will be installed, corresponding to a meager 8% increase from today’s capacity.

Although the onshore wind capacity has grown fast, NVE estimates it will only see a 3 TWh growth until 2040. On the other hand, the offshore wind capacity will grow fast, from 0 to 7 TWh in the same period. And believe it or not, solar could also increase from 0 to 7 TWh.

Future estimate of power generation by source in Norway. Source: NVE.

As you can see, not much will change on the power generation side in Norway until 2040, except for a little higher share of wind and solar.

The most important takeaway for bitcoin miners regarding Norway’s electricity mix is that it’s fully renewable, and will stay that way.

The Further North, The Cheaper Electricity

With zero marginal cost of hydroelectric power, Norway has enjoyed some of Europe’s cheapest electricity. Although the country is divided into five electricity price zones, prices have historically been similar in all zones. That changed in 2021.

Historical power prices in Norway. Source: Nordpool.

In the last five years, power prices usually stayed between $0.03 and $0.05 per kilowatt-hour (kWh) in all the price zones, only interrupted in 2020 when they fell below $0.01 per kWh, caused by higher-than-average precipitation that filled up the hydropower reservoirs.

After an unusually cheap 2020, Southern Norway’s electricity consumers were shocked in 2021 as they saw a seven-fold increase in their prices, while consumers in the Northern and Middle regions didn’t see similar increases.

There are several explanations for the sudden regional price differences, but the most significant factor is that the southern part of Norway has become heavily connected with the rest of Europe’s power markets as new underwater power lines to the continent were opened at the end of 2020 and the beginning of 2021.

With Southern Norway so connected to the European markets, the prices on the continent directly influence our domestic power prices. 2021 was a year with record-high energy prices globally, with gas, coal and CO2 prices shooting through the roof, making electricity expensive in Europe, further dragging up prices in Southern Norway.

Norway’s electricity price zones. Source: Jaran Mellerud.

Due to transmission constraints between Middle Norway and Southern Norway, only the southern part of the country is fully connected with the European market. The middle and northern regions are still enjoying low prices due to the limited transmission capacity.

Power Will Stay Expensive In The South And Cheap In The North

With Norway connected to the volatile European market, it’s uncertain how electricity prices will develop in the future. National grid operator Statnett expects the power prices to gradually decrease due to European gas and coal prices “normalizing.”

Estimates for future power prices in Norway. Source: Statnett.

Statnett’s analysis is from before Russia invaded Ukraine. The conflict has already led to soaring fuel prices, putting upward pressure on European power prices. Therefore, I don’t share Statnett’s optimism that fuel prices will “normalize,” and I expect power prices to stay at elevated levels in Southern Norway.

Although prices will stay high in the South, I don’t expect similar price increases in the North soon. With record-high prices in Southern Norway, they would love to tap into Northern Norway’s electricity but can’t, due to limited transmission capacity. Statnett plans to build new transmission lines to alleviate these constraints until 2030, and I expect the price gap to persist at least until then.

Norwegian Miners Want To Contribute To The Energy Sector

Norwegian miners are exploring how to increase their participation in the energy sector, either by providing balancing services in the power market or by reusing the excess heat from their operations.

The need for energy-intensive industries like bitcoin miners to help balance the electricity system is increasing as wind and solar’s share of the generation capacity grows. The electricity supply and demand must always be in balance, and historically we have been able to provide this balance by simply adjusting production. Because wind and solar are weather dependent, we can’t easily adjust their production to follow the demand.

Norway’s grid operator Statnett understands that the need for grid balancing will increase, and therefore opened a balancing market this year where demand-side resources like bitcoin miners can participate. Bitcoin mining is highly suitable for grid balancing since the process is both energy-intensive and can be interrupted at almost no cost. You can learn more about that in this article, explaining how miners are helping stabilize Texas’ electricity system.

In addition, many Norwegian bitcoin miners are experimenting with reusing excess heat from their operations. These waste-minimization initiatives can benefit Norway, both from an economic and ecological perspective since heating makes up a significant share of a cold country’s energy consumption. At the same time, heat is bitcoin miners’ main waste component.

Kryptovault has been reusing the heat from their Hønefoss operation to dry lumber for more than two years. The company collects the heat from its mining operation in pipes and donates it to a local lumber company that employs six people at the site, reducing waste and creating local jobs.

Lumber waiting to be dried outside of Kryptovault’s Hønefoss facility. Source: Kryptovault.

Kryptovault’s lumber-drying project is just one of many potential applications of reusing heat from bitcoin mining. Miners are looking at possibilities for connecting to district heating systems, heating fish farms, greenhouses, pools, spas, etc. The potential is enormous, and I believe that we will see this process flourish in Norway in the coming years.

A Politically Stable Country, But Bitcoin Mining Is Controversial

In addition to looking for cheap and green electricity, miners seek jurisdictions with favorable regulatory environments and political stability.

Norway is one of the world’s most politically stable countries, with acceptable regulatory conditions for most businesses, giving it ninth place in the World Bank’s Ease of Doing Business Index.

Still, the bitcoin mining industry is not the most popular in the country and has faced some political opposition. To understand the political risk, you must know about the power-tax saga from 2019.

While most power consumers in Norway pay a power tax of NOK 0.1541 ($0.017) per kWh, the energy-intensive industrial sector pays only NOK 0.0055 ($0.0006) per kWh. In 2016, the Norwegian government made data centers eligible for this reduced power-tax rate to attract more of them to Norway.

The government hoped for Google or Facebook but instead got bitcoin miners. Displeased by how their regulations backfired, they decided to revoke the reduced tax rate specifically for crypto miners in 2019. As a result, miners’ electricity prices suddenly increased by $0.016 per kWh, a substantial amount in an industry with a median power price of $0.04.

Many Norwegian data centers are combined facilities, partly hosting bitcoin miners. Therefore, this tax hike affected a significant share of the data center industry. In addition, data centers that weren’t directly affected started to question the previously indisputable political stability of operating in Norway, and the country’s excellent international reputation in the industry began to crack.

The whole sector quickly joined forces and started fighting against the tax hike, backed by the Confederation of Norwegian Enterprises (NHO) and the Norwegian IT association, IKT Norge.

In 2020, the Norwegian government gave in to the pressure and decided not to revoke the reduced power tax after all. They may have realized that such a granular selectivity in their decision-making for who is eligible for a reduced power tax is most likely in conflict with several Norwegian and international laws.

Still, the harm was already done. Bitmain, Hive Blockchain and several other companies decided to leave Norway because of the increased regulatory uncertainty.

Bitcoin miners are considered eligible for the reduced power tax, but we may not have seen the end of the saga yet. Some Norwegian politicians still haven’t given up on increasing miners’ power tax, while some even want to ban bitcoin mining.

Recently we have also seen attempts on regulatory restrictions from the EU, of which Norway is not a member. However, the EU still has a considerable influence on Norwegian legislation since Norway is, through various agreements, obliged to comply with a large part of the EU’s regulations.

In November 2021, Swedish regulators proposed a draft for an EU-wide Bitcoin ban from 2025. Norwegian local government and regional development minister Bjørn Arild Gram announced that he would attempt to copy the ban in Norway if it passed the vote in the European Parliament. In the end, the ban attempt was unsuccessful.

Luckily, Norway doesn’t have a long history of populistic bans on certain activities based on subjective opinions. In addition, certain international agreements also protect industries from government overreach. Therefore, even though fractions in the national government may not like it, it’s very unlikely that mining will become regulatorily infeasible in Norway.

Conclusion

Thanks to its cheap and clean power, cold climate and political stability, Norway has attracted an outsized bitcoin mining sector considering the nation’s small population.

From 2021, substantial power price differences emerged between the southern and northern parts of the country. These price gaps will persist and therefore miners should ideally locate their operations in the much cheaper North.

Even though Norway is considered one of the most politically stable countries globally, the bitcoin mining industry remains controversial and faces some political opposition. Examples are the Norwegian government’s unsuccessful attempt to raise power taxes specifically for miners and Swedish regulators’ failed EU-wide Bitcoin ban.

Still, we should keep in mind that the bitcoin mining industry is not only controversial in Norway but also in most other countries. Therefore, relative to most other alternative countries for bitcoin mining outside North America, I don’t consider Norway one of the most politically hostile to the industry.

Recently, North America has soaked up a large share of the mining capacity, and I assume some of these miners look at Norway as a potential location to diversify their operations geographically.

Also, as miners increasingly face public pressure in using renewable energy, tapping into the Norwegian green hydropower becomes even more attractive.

Because of these reasons, I expect the bitcoin mining industry in Norway to keep growing, especially in the northern part of the country.

If you would like to discuss bitcoin mining with me or have questions about mining in Norway, please reach out to me @jmellerud on Twitter.

Appendix: Overview Of Norwegian Miners

Here are all the mining facilities I identified in Norway.

Kryptovault In Hønefoss

Kryptovault in Hønefoss is the biggest facility in Norway, with 45 MW of bitcoin mining capacity. They are currently operating around 18 MW since they are in the process of replacing their older ASICs with newer and more energy-efficient models.

Kryptovault’s facility in Hønefoss. Source: Kretsløpet.

In 2018, Kryptovault rebuilt Norske Skog’s paper mill in Hønefoss, which had been abandoned since 2012. On this site, Kryptovault reuses waste heat from their mining operations for drying lumber.

Kryptovault In Dale

In addition to their Hønefoss facility, Kryptovault operates a 25 MW facility in Dale. Currently, they utilize around 8 MW of the facility’s capacity.

Kryptovault’s facility in Dale. Source: Terjestorage.

The Dale data center is located in a building that once was Norway’s largest textile factory. This revitalization of abandoned industrial buildings helps bring new life to old buildings and saves Kryptovault investment costs and development time.

COWA And Lian Group In Mo

Cowa and Lian Group’s facility in Mo, in the North, is the country’s second largest with a capacity of 40 MW, of which 36 MW is currently used. Bitfury built this facility in 2018 and self-mined here until 2022.

Cowi and Lian Group’s facility in Mo. Source: Bitfury.

Bitdeer In Molde

Cloud mining platform Bitdeer hosts 38 MW in the Troll Housing data center outside Molde. Troll Housing’s facility utilizes a former mine, where the climate conditions are perfect for bitcoin mining year-round.

Source: Troll Housing.

Although planning a public listing, Bitdeer is reluctant to share information on its operations, but according to an investor prospectus from January 2022, they have 38 MW of mining in Molde. The only data center I could find in the Molde area with sufficient capacity to host 38 MW is Troll Housing. Therefore, I’m reasonably sure that Troll Housing is hosting Bitdeer.

Bitdeer In Tydal

Bitdeer is expanding its Norway operations with a 50 MW data center under development in Tydal. Troll Housing, which also hosts Bitdeer’s Molde operation, is constructing the Tydal data center.

Bitdeer’s most recent investor prospectus confirms this data center.

Construction of Bitdeer’s facility in Tydal. Source: Adressa.

Bitzero In Tunnsjødal

Canadian miner Bitzero is developing a facility in Tunnsjødal. With 100 MW under development, the facility can potentially become the biggest in Norway when finished in 2023. Having completed the first development step, Bitzero currently mines with 7 MW.

Tunnsjødal Hydroelectric Power Station. Source: Nettavisen.

The facility is located close to Tunnsjødal Power Station, the biggest power plant in the central part of Norway, with an installed capacity of 176 MW.

Arcane Green Data In Fyresdal

Arcane Green Data has since 2021 hosted 2.5 MW in Oslofjord Datacenter in Fyresdal, currently operating close to full capacity.

The inside of Oslofjord Datacenter in Fyresdal. Source: Torbjørn Bull Jenssen.

Oslofjord Datacenter is a combined facility that only uses part of its capacity for bitcoin mining. In addition to hosting Arcane Green Data, they also host 2.5 MW for another bitcoin miner, giving their data center a total bitcoin mining capacity of 5 MW.

Bluebite In Bodø

The German company Bluebite has since 2019 operated a 1 MW data center in the Arctic city of Bodø inside a building previously used for the production of marine equipment. The company considers the Bodø data center as a pilot project while looking for expansion opportunities in northern Norway.

Bluebite’s facility in Bodø. Source: NHO.

Bluebite In Sulitjelma

Bluebite is developing a data center in Sulitjelma, a former mining town one hour from Bodø. In addition to doing cloud computing, they are currently mining with 4 MW but are looking to expand.

Abandoned industrial buildings in Sulitjelma. Source: Wikimedia Commons.

Bluebite is revitalizing one of the town’s many abandoned industrial buildings, bringing new industrial activity in the form of bitcoin mining to the former copper mining powerhouse of Sulitjelma.

Making a local impact is a top priority for Bluebite, so they plan to reuse excess heat from their data center for a greenhouse or spa to create even more local jobs.

New Mining Company In Alvdal

New Mining Company is a Russian group mining bitcoin since 2018 in Alvdal. Their 3 MW operation has been highly controversial, with neighbors complaining about the noise and some even suspecting the company of using their mining activities as a cover for a Russian spy operation.

New Mining Company’s facility in Alvdal. Source: Alvdalmiv.

After a series of disagreements, the local government terminated their land-lease agreement with New Mining Company, giving them one year to leave the property.

Northern Data In Måløy

Although this article focuses on bitcoin miners, I decided to include one big ether miner. German company Northern Data mines ether with a capacity of 25 MW deep inside a mountain in the Lefdal Mine data center in Måløy in the western part of Norway.

Northern Data’s mining containers in Lefdal Mine, Måløy. Source: Northern Data.

Lefdal Mine is one of several abandoned mines in Norway which have been turned into data centers. As one of Europe’s largest data centers, they also have several non-mining customers.

Northern Data In Notodden

After having mined crypto deep inside the mountain in Lefdal Mine since 2018, Northern Data expanded their Norway operations with a 40 MW data center in Notodden in 2021.

Hydroparken Notodden. Source: Digitalt Museum.

The data center is located in the industrial park Hydroparken, and like most miners in Norway, Northern Data are exploring how to reuse the excess heat.

Northern Data In Vassbygdi

In 2021 Northern Data bought an old industrial building in Vassbygdi, deep inside Sognefjorden, Norway’s longest fjord.

It’s unclear whether they mine bitcoin, ether or use the data center for other high-performance computing purposes. Still, just like in their Notodden data center, a job ad reveals that they are looking for engineers to work on GPUs, so they likely mine ether here.

Northern Data’s facility in Vassbygdi. Source: Aurland Kommune.

Hydrokraft In Glomfjord

Hydrokraft is constructing a 30 MW data center in Glomfjord in northern Norway, planning to finish it later in 2022. The data center is located in Glomfjord Industripark, an industrial hub consisting of 19 companies. Hydrokraft has ambitions of reusing heat from the data center for other industrial applications.

Glomfjord Industrial Park. Source: Glomfjord Industripark.

This is a guest post by Jaran Mellerud. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Filed Under: Bitcoin Magazine, business, Electricity, Energy, English, Feature, Mining, Norway

Norway Mulls Backing Sweden’s Call for Euro Ban on Crypto Mining

18/11/2021 by Idelto Editor

Norway Mulls Backing Sweden’s Call for Euro Ban on Crypto Mining

The government in Norway is considering ways to limit the environmental impact of cryptocurrency mining and may support Swedish proposals to that end, including a European ban on proof-of-work mining. The European Commission has revealed it is already working to promote a transition to “more sustainable” protocols.

Extensive Use of Renewable Energy for Mining Is Hard to Justify, Norway Minister Says

Authorities in Norway are mulling over potential policy measures to deal with the effects of crypto mining on the environment, the country’s minister responsible for local government and regional development has indicated. As part of the review, the Norwegian government intends to look into solutions recently put forward by Swedish regulators and work for common European rules. Speaking to Euronews Next, Minister Bjørn Arild Gram also stated:

Although crypto mining and its underlying technology might represent some possible benefits in the long run, it is difficult to justify the extensive use of renewable energy today.

Both countries, along with another Nordic nation, Iceland, have in the past few years become popular destinations for cryptocurrency miners. The region boasts abundant renewable energy resources and maintains relatively low electricity rates. According to Eurostat data for the first half of 2021, Norway offered the cheapest electricity for non-household consumers in the European Economic Area (EEA), with over 90% of its energy coming from hydroelectric power generation.

Bjørn Gram’s statement comes after the directors of Sweden’s financial services and environmental protection agencies called for imposing a ban on proof-of-work mining across the European Union, after a multifold increase of energy usage by bitcoin miners in the country this year. “Sweden needs the renewable energy targeted by crypto asset producers for the climate transition of our essential services, and increased use by miners threatens our ability to meet the Paris Agreement,” the officials warned.

“Overall, we want our renewable energy to be used in a way that creates value and that supports the transition to a climate neutral society,” Minister Gram elaborated. His comments are part of a heated discussion in Norway regarding the use of renewable energy to power digital coin minting after Oslo introduced tax breaks for data centers in 2016. The country’s new environment minister, Espen Barth Eide, has in the past expressed concerns over Norway becoming the “world’s Bitcoin mine” at the expense of its own power-intensive industries.

European Commission Urges Crypto Miners to Move Away From Proof-of-Work Concept

Regional Development Minister Bjørn Gram did not provide any specific details regarding the regulatory policies the Norwegian government is currently considering. But if Norway decides to follow in the footsteps of Sweden, it may result in a crackdown on crypto mining operations that require significant amounts of energy.

Meanwhile, the European Commission (EC), which would be responsible for enforcing crypto regulations in the EU, has admitted that it’s already encouraging the crypto mining industry to “migrate applications” from energy-intensive proof-of-work blockchains to less demanding protocols like proof-of-stake and hybrid consensus models, Euronews Next revealed. A spokesperson for the executive body told the publication that the EC is working to promote “more sustainable forms of blockchain technologies.”

The Commission, the representative added, has “ambitious emission reduction targets” and promotes the advancement of less energy-intensive blockchain technologies through funding for startups and direct development of a public sector blockchain network. Although the Paris Climate Agreement, referred to by Swedish regulators, does not ban crypto mining, Brussels is aware of developments in jurisdictions like China and will discuss the matter with EU member states, the official added.

Do you think Norway, Sweden, and the EU will impose restrictions on energy-intensive crypto mining? Share your expectations in the comments section below.

Filed Under: ban, Bitcoin Miners, bitcoin-mining, Carbon, climate, crypto, crypto miners, crypto mining, Cryptocurrencies, cryptocurrency, Electricity, electricity rates, emissions, Energy, energy resources, English, environment, EU, Europe, european, European Union, Hydroelectric, Iceland, Measures, Miners, Mining, News Bitcoin, Norway, policies, power, Renewable Energy, restrictions, Sweden

Report: Bitcoin Mining Firm Northern Data AG Plans for a $500 Million IPO

24/02/2021 by Idelto Editor

Report: Bitcoin Mining Firm Northern Data AG Plans for a $500 Million IPO

While the public prepares for the upcoming Coinbase public offering, the mining firm Northern Data AG is reportedly planning to go public as well. Sources say that the mining business is in talks with Credit Suisse Group to launch an initial public offering (IPO) in the United States.

Report: Sources Say Northern Data AG IPO for $500 Million Is in the Works

Recent reports say that Northern Data AG, the mining operation that mines bitcoin (BTC), is planning to IPO in the near future. Bloomberg reveals that “sources familiar with the matter” have told the publication that Northern Data AG is “working with Credit Suisse Group AG.”

Northern Data claims to be one of the largest mining operations worldwide and on November 18, 2019, the German company teamed up with Whinstone US, Inc., a Louisiana-based firm.

At that time, Northern Data detailed that the merger agreement with its U.S. competitor Whinstone would position the firm as a “leading global player” in the bitcoin mining industry. Northern Data claims the mining site in the U.S. state of Louisiana will be “by far the largest bitcoin mining facility worldwide with a capacity of one gigawatt on an area of over 100 acres in Texas.”

The Bloomberg report reveals that Northern Data’s IPO could happen this year and the sale of the company’s shares would increase shareholders.

Northern Data’s shares already swap over-the-counter (OTC) on Deutsche Börse’s Xetra. Since bitcoin (BTC) prices tumbled during the last 48 hours, Northern Data’s shares sold on Xetra are down -11.51% today. However, the company’s stock has jumped 3x already this year alone since BTC’s climatic price rise.

Company Aims to Complete 1-Gigawatt US Bitcoin Mining Operation by the End of 2021

Northern Data also reportedly owns and operates a renewable energy bitcoin mining site in Norway. The bitcoin mining operation is led by CEO Aroosh Thillainathan and the massive U.S. mining site is being constructed in three phases.

Besides the other mining sites, the Rockdale, Texas facility aims to be the company’s largest to date. With two more months left in Q1 2021, Northern Data is hoping to finish the 1-gigawatt establishment by the year’s end.

Back in 2019, Thillainathan, the cofounder of Whinstone US at the time, said “the joint [partnership] has the immediate potential to shape the future course of the global mining industry.” Reports of Northern Data’s alleged IPO follow the upcoming Coinbase direct sale, as the San Fransico company has been valued at $100 billion. Northern Data’s IPO aims to raise $500 million according to sources.

What do you think about Northern Data reportedly planning to IPO with Credit Suisse Group AG? Let us know what you think about this subject in the comments section below.

Filed Under: Aroosh Thillainathan, Bitcoin (BTC), bitcoin-mining, BTC, BTC Mining, crypto mining, English, initial public offering, ipo, Mining, mining bitcoin, News Bitcoin, Northern Data, Northern Data AG, Norway, rockdale, Texas, US IPO

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