Finland: The Next Big Destination for Bitcoin Miners?
Finland is emerging as a promising new destination for Bitcoin miners, leveraging its robust electricity generation capacity and innovative heat recovery techniques. This Nordic country, historically overshadowed by its neighbors in the Bitcoin mining arena, is now on the verge of becoming a global leader, thanks to its unique position to sell waste heat to an advanced district heating network, according to Hashrate Index.
Despite its current small footprint in the Bitcoin mining world, with a capacity of merely 40 MW contributing to 0.3% of Bitcoin’s hashrate, Finland is poised for exponential growth. The landscape is shifting, with Finland potentially hosting 300 MW of mining capacity in the next two years, drawing parallels with Norway’s mining industry.
At the heart of Finland’s attractiveness lies its diverse, non-fossil-based electricity mix, with nuclear power constituting 35% of its generation in 2022. The recent launch of the Olkiluoto III reactor, Europe’s largest nuclear reactor, is a game-changer, significantly boosting Finland’s nuclear contribution to over 55% and marking it as the second-largest nuclear power after France. This shift towards nuclear, complemented by an ambitious wind and solar expansion, positions Finland as an energy self-reliant nation with the potential to become a net exporter.
The implications for Bitcoin miners are profound. The influx of nuclear, wind, and solar capacity not only promises an electricity surplus but also necessitates demand flexibility in the Finnish grid. Miners can play a crucial role here, with opportunities to secure annual revenues of $70k per MW by providing demand response capacity.
Electricity prices in Finland, historically higher than in its Nordic neighbors, are set to decrease with this new capacity. The introduction of the 1,600 MW nuclear reactor has already led to a substantial drop in prices, with further reductions anticipated as more renewable projects come online. The expectation is that Finnish electricity prices will align with or even undercut those in northern Sweden, making it an increasingly attractive location for Bitcoin mining.
Moreover, Finland’s sophisticated district heating systems present a unique opportunity for miners. By supplying waste heat to these systems, miners not only gain an additional income stream but also enhance their political positioning, making it difficult for regulators to curb the industry.
Politically, Finland offers a stable and relatively safe environment for miners. The country’s pragmatic approach to energy and regulatory stability bodes well for the industry’s future growth. Coupled with favorable climate conditions that optimize mining operations, Finland stands out as an ideal mining destination.
