The North of Europe is not a safe haven for mining now
Norway and Sweden were two countries where miners could try to find a safe haven. However, skyrocketing electricity costs reached them as well.
Thus, many miners had to suspend work for the cold period. Tariffs were so significant that it exceeded the previous rate by 3-4 times.
Denis Rusinovich, co-founder of CMG Cryptocurrency Mining Group and Maverick Group assessed the abrupt coming of cold weather as a shocking coincidence:
Late November saw increased demand due to coldness, weak wind, which made energy production more difficult, and maintenance delays at a number of nuclear power plants. All of this led to miners shutting down equipment to save money.
Kjetil Pettersen, CEO of Kryptovault, noted that the decision to continue operations is based on a price analysis:
We evaluate prices and decide to turn off or turn on the equipment. For now, all the units are disabled.
Pettersen also said he predicts lower prices in Norway early next year. Miners in Europe depend on a number of factors:
The survivability of European mining depends on the availability of debt, the amount of reserve capital, and the ability to raise additional finance.
