European Miners Cannot Avoid High Energy Costs

Moving its operations to Norway and Sweden due to rising energy costs worldwide cryptocurrency The miners also faced difficult conditions in the countries where they settled.

Cryptocurrency miners operating in various European countries moved their systems to the Nordic countries months ago due to rising energy costs. However, the miners who immigrated to Norway and Sweden, which subsidize the costs with the welfare state model, were once again in a difficult situation as the resistance of the governments of the mentioned countries was broken.

According to data from Nordpol, one of northern Europe’s main energy markets, the cost of electricity per kilowatt rose to 18 cents. This figure corresponds to four times the previous three years.

Denis Rusinovich, one of the managers of CMG Cryptocurrency Mining Group, one of the largest cryptocurrency mining companies in the region, stated that rising energy costs in Northern Europe also caused a great cost shock for them.

For this reason, some cryptocurrency miners operating in Northern Europe had to disable their rigs. Kjetil Pettersen, CEO of Kryptovault, another crypto mining company operating in Norway, announced that they continue their activities by calculating hourly costs and turning the equipment off and on when necessary.

Bitcoin Production Cost, Above Price

Despite the low inflation data, the production cost of one BTC exceeded the market value due to the depreciation of the crypto market with Powell’s hawkish statements. According to Glassnode’s data, 1 unit with mining activity BTC It costs $18,800 to produce, while the current market price is just $16,600.