Bitmain’s Norwegian Office To Move To Germany
Bitmain, a major mining equipment manufacturer, is closing its division in Norway and ceasing all operations in this jurisdiction. Instead, the office will move to Germany, ICOshock reports.
The mining giant Bitmain has worked in Norway for only a year. Julie Hvideberg, the general manager of the unit, has already left her position.
The office will move for two main reasons. The first one is the decision of the Norwegian authorities to raise the electricity price for computing centers that work with cryptocurrencies. The second reason is the bitcoin’s drop and low profitability of mining.
There is an opinion that cold Scandinavian countries are more favorable for the industry since mining here does not require additional energy expenses for cooling the room. However, local electricity prices is also an important factor, often decisive for many mining companies.
According to Hvideberg, Norway is no longer a priority course for Bitmain, since this market is too uncertain. It will be better for the company to move operations to Germany, where the industry is legalized, and business expenses are much lower, the head of the division added.
Norwegian miners are now deprived of electricity subsidies. As Lars Haltbrekken, one of the local deputies, stated, the country can no longer provide credits to “dirty” companies, which require large amounts of electricity and emit greenhouse gas into the atmosphere.
Last summer, a mining company Kryptovault received complaints about noise from local residents and was at the edge of being shut down by the Norwegian authorities. Then the firm’s chief decided to allocate funds for noise-reduction equipment.
Previously, several farms for crypto mining were seized in Moscow.