Iceland cuts electricity to new Bitcoin miners

Icelandic national electricity company Landsvirkjun has reduced the amount of electricity it will supply to certain industries, including...



Icelandic national electricity company Landsvirkjun has reduced the amount of electricity it will supply to certain industries, including aluminum smelters and Bitcoin miners.

A representative of the island’s electricity company reported He was forced to cut power allocations to Southwest Bitcoin miners and various industrial facilities due to a series of issues, including a problem at a power plant, low hydraulic reservoir levels and the access to energy from an external supplier.

Mining operations have long been attracted to the country because of its abundance of geothermal energy which is harvested to create an abundant and cheap supply of renewable energy. But from December 7 for an unknown duration, any new demand for electricity from mining operations will be rejected, according to Landsvirkjun.

from Canada Hive Blockchain Technologies, Genesis mining, and Bitfury Content are the top three Bitcoin mining companies that have opened facilities in Iceland.

For nearly a decade, miners have tried to fulfill the promise of environmentally friendly Bitcoin mining in Iceland. In 2013, the Cloud Hashing moved 100 miners in Iceland. In November 2017, the Austrian company HydroMiner GmbH raised about $ 2.8 million in its initial coin offering (ICO) to install mining rigs directly into Icelandic power plants.

Less than 1% of the country’s electricity is generated from non-renewable sources.

Related: UN climate change targets for COP26 include new taxes on technology and carbon

The country’s aluminum smelting industry has been hit hardest by the distribution failure. Aluminum prices rose 1.1% on December 7 to reflect the supply bottleneck created by a recent increase in demand and the current electricity supply crisis.

Globally, green blockchain initiatives became all the rage in 2021. Thought leaders at the COP26 conference in Glasgow, Scotland discussed energy-intensive bitcoin mining. The conference saw the launch of GloCha United Citizens Organization (UCO) for action on climate empowerment. It will use blockchain technology to advance climate change goals.