Landsvirkjun, Iceland’s National Electric Company Rejects Bitcoin Miners Amid Power Shortage
Iceland’s Power Company Rejects New Bitcoin Miners
The scarcity of power in Iceland has led the country’s national electricity company, Landsvirkjun, to reject new Bitcoin miners. Landsvirkjun did not address requests from new customers about purchasing energy for cryptocurrency mining. Cryptocurrency mining businesses have been a new addition to Iceland’s economic landscape. These businesses are attracted by the low energy costs required to mine new cryptocurrencies. In addition, Landsvirkjun has also cut some industrial customers, such as aluminum smelters and data centers. According to the company, the factors that led to the reduction in supply were low hydroelectric reservoir water levels, power plant failures and delays in purchasing electricity from outside producers.
Tinna Traustadottir, executive vice president of sales and customer service at Landsvirkjun, says even huge demand is contributing to a drop in power supplies. told Bloomberg.
For a long time, many cryptocurrency miners have been attracted to the country due to its abundant geothermal energy. Miners mine to create an abundant and cheap supply of renewable energy. Companies that have set up shop in Iceland include Hive Blockchain Technologies Ltd. Based in Canada, Genesis Mining Ltd. based in Hong Kong and Bitfury Holding BV.
According to Landsvirkjun, all power requests from new customers of crypto mining were denied on December 7. Availability of geothermal energy in Iceland, which is used to generate power supplies cheap renewable energy, already has attracted cryptocurrency mining businesses since a long time.
This is not the first time Bitcoin mining practices have been questioned around the world. Two of the recent Swedish general managers Proposal to ban cryptocurrency mining to meet climate obligations. Then, back in September 2021, the government in China imposed a comprehensive ban on all forms of cryptocurrency trading.
The price of the world’s oldest and largest cryptocurrency has increased by about 80% by 2021. Bitcoin’s value hit an all-time high of over $68,000 in November.
