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Iceland cuts power to new Bitcoin miners

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Landsvirkjun, Iceland’s national electricity provider, has reduced the amount of electricity it will offer to specific companies, such as aluminium smelters and Bitcoin (BTC) miners.

Due to a number of concerns, including a failure at a power plant, low hydro-reservoir levels. As well as receiving electricity from an external provider, the island’s power utility has been obliged to limit energy allocations to southwestern Bitcoin miners. In addition to various industrial enterprises.

New requests from mining operation are on hold till further notice

The abundance of geothermal energy, which harnessed to generate a cheap and plentiful supply of renewable energy, has long drawn mining businesses to the area. Any new requests for electricity from mining operations will be on hold beginning Tuesday for an undetermined amount of time, according to Landsvirkjun.

The three major Bitcoin mining businesses that have opened operations in Iceland are Canada’s Hive Blockchain Technologies, Genesis Mining, and Bitfury Holding.

Miners have been trying to make the promise of environmentally friendly Bitcoin mining in Iceland for nearly a decade. 100 miners were sent to Iceland by Cloud Hashing in 2013. HydroMiner GmbH of Austria received $2.8 million in an initial coin offering in November 2017. In order to construct mining equipment at Icelandic power facilities.

Non-renewable energy accounts for less than 1% of the country’s total electricity production.

The distribution failure has wreaked havoc on the country’s aluminium smelting industry. Aluminium prices increased 1.1% on Tuesday. Reflecting a supply shortage caused by a recent jump in demand and a power shortage.

Green blockchain initiatives are becoming increasingly popular around the world in 2021. The energy-intensive Bitcoin mining was a subject of discussion at the COP26 summit in Glasgow, Scotland. The GloCha United Citizens Organization for Climate Empowerment officially launched during the meeting. It will make use of blockchain technology in order to achieve its climate change goals.

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