Mining businesses have long been drawn to the region owing to its availability of geothermal energy, which is harnessed to generate a cheap and abundant source of renewable energy. However, Landsvirkjun reports that from Tuesday, any new requests for power from mining activities would be refused for an undetermined amount of time.
Three major Bitcoin mining businesses have established operations in Iceland: Canada’s Hive Blockchain Technologies, Genesis Mining, and Bitfury Holding. Miners have been attempting to achieve the guarantee of eco-friendly Bitcoin mining in Iceland for almost a decade.
Cloud Hashing relocated 100 miners to Iceland in 2013. HydroMiner GmbH, an Austrian business, raised around $2.8 million in November 2017 via an initial coin offering to put mining equipment directly into Icelandic power facilities. Non-renewable energy sources account for less than 1% of the country’s electrical generation.
The aluminum smelting sector in the nation has been worst damaged by the distribution breakdown. Aluminum prices increased 1.1 percent on Tuesday, reflecting a supply shortage caused by a recent jump in demand and the current power supply shortage.
Green blockchain projects have risen in popularity globally in 2021. At the COP26 meeting in Glasgow, Scotland, thought leaders discussed energy-intensive Bitcoin mining. At the convention, the GloCha United Citizens Organization for Climate Empowerment was launched. It will achieve climate change goals via the use of blockchain technology.