Sweden Expects to Attract Hoards of Norwegian Bitcoin Miners After Brutal Tax Hike

 In Bitcoin, Exchanges, Governments and Regulations

Mining

With Norway set to revoke electricity subsidies for cryptocurrency miners from January 2019 onward, Swedish data centers are anticipating a wave of inquiries from mining companies seeking to domicile in Sweden.

Data Centers See Demand from Miners Leaving Norway

Sweden Expects to Attract Hoards of Norwegian Bitcoin Miners After Brutal Tax HikeLocal media outlets have reported that Sweden’s data centers expect a wave of interest from miners leaving Norway, following reports that the government will repeal electricity concessions. As of January 2019, miners operating in Norway will have to pay the equivalent of $0.019 per kilowatt-hour (kWh), up from approximately $0.00056/kWh under the current subsidies. By contrast, Swedish data centers reportedly pay the equivalent of about $0.00055/kWh.

Swedish Municipality of Boden Seeks Miners

Sweden Expects to Attract Hoards of Norwegian Bitcoin Miners After Brutal Tax HikeThe Swedish municipality of Boden currently hosts about 10 cryptocurrency mining companies. But Erik Svensson, director of the Boden Business Agency, predicts that the number of miners in the locality will soon grow as companies begin to leave Norway.

“It is clear that … we are becoming very attractive,” Svensson said in reference to Norway’s revoked subsidies. “This is about … big money … and it’s definitely going to make it cheaper here.”

When asked if he will reach out to miners based in Norway, Svensson stated: “I think the companies in Norway are contacting us, they know where we are.”

Svensson also emphasized the potential benefits that increased investment from mining companies could bring to the locality. He estimated that there are “a few hundred people” currently employed by data centers in Boden. “As a result of revenue and activity in the municipality, we have started building Boden Business Park, where we will create hundreds of jobs,” he added.

Bitmain Reportedly Eyeing Sweden

Sweden Expects to Attract Hoards of Norwegian Bitcoin Miners After Brutal Tax HikeBitmain is one of a number of mining companies that have had their operations impacted by the Norwegian government’s decision to cancel the subsidies.

“Government policy [is] push[ing] the industry out of Norway,” said Julie Hvideberg, the head of the company’s Norwegian operations. “We are a global company and can move to Sweden or Denmark, but our Norwegian partner loses a big contract.”

Source link: Click here. Disclaimer:  This is a third-party article. The information on the Verified topics are provided on a strictly "as is," "where is" and "where available" basis. Verified topics expressly disclaim any implied warranties. Note Verified topics do not give any financial advice, for more information see our Acceptance of terms.

HOMEPAGE

Start typing and press Enter to search