The geopolitical landscape has worsened in recent years, posing potential threats to Bitcoin mining infrastructure in Europe and other regions.
Bitcoin Mining in Norway
In Norway, local communities are becoming dependent on Bitcoin miners. A case in point is when the closure of a local miner led to a $300 per year increase in power bills for each household. After the miner’s departure, which paid 20% of the area’s energy costs, utility rates surged.
Bitcoin and Crypto Mining in Europe
Bitcoin mining in Europe is concentrated in Norway, Sweden, Finland, Germany, Austria, and Iceland. Norway accounts for about 3% of the global Bitcoin hashrate. In Sweden, military spending has increased by 40% amid tensions with Russia. Finland is developing projects that make mining a critical infrastructure for heating.
Bitcoin Mining in Russia
Russia also has significant mining operations, including BitRiver in Bratsk, which was sanctioned for aiding sanctions evasion. Gazpromneft, Gazprom's oil subsidiary, uses associated natural gas to generate electricity for mining.
A wider war in Europe could threaten Bitcoin and crypto mining infrastructure. If wartime conditions worsen in Europe, firms may consider relocating to the U.S. or Latin America, impacting the global distribution of hashrate.
