Iceland Refuses to Power New Bitcoin Farms Amid Electricity Shortages

Iceland Refuses to Power New Bitcoin Farms Amid Electricity Shortages

Cryptocurrency mining is among several energy-intensive industries hurt by a power deficit in Iceland. The country’s main utility is now rejecting requests to connect new coin minting facilities to the grid, after cutting supply to aluminum smelters and fish factories.

Iceland Turns Away New Crypto Miners to Deal With Lack of Energy

Iceland’s largest utility, Landsvirkjun, has been forced to limit energy supplies to power-hungry industrial customers including aluminum producers and fish processing plants. The restrictions have been applied to consumers with curtailable short-term contracts as well. Data centers mining digital currencies are among the affected enterprises and the company has been turning away new bitcoin miners.

Landsvirkjun explained the need for the reduction citing a malfunction at a power station and the low water reservoir levels, Bloomberg reported. The supplier also faced a delay in sourcing electricity from an external producer. The utility announced on Tuesday that the cuts were effective immediately.

Unusually high demand for electricity has been another key factor for the deficit, noted Tinna Traustadottir, executive vice president of sales and customer service at Landsvirkjun. Iceland’s giant smelters have been a major consumer for decades but a growing number of cryptocurrency miners, attracted by the island nation’s cheap energy, are now playing a role, too.

Crypto mining companies such as the Canadian Hive Blockchain Technologies and the Hong Kong-listed Genesis Mining and Bitfury Holding are among those that are already operating coin minting facilities in the country. Landsvirkjun said, however, that it’s now rejecting requests from new customers in the mining sector.

The company further elaborated that due to limitations of Iceland’s distribution system, it cannot serve load points from the country’s biggest power station, Karahnjukavirkjun. The plant is located in the eastern part of the country while the island’s western region is mainly the one experiencing deficits.

News of Iceland’s troubles with electricity shortages comes after two other Nordic nations, Sweden and Norway, voiced concerns about the rising energy needs and growing environmental impact of cryptocurrency mining. In November, Swedish regulators called for an EU-wide ban on crypto mining. A couple of weeks later, the Norwegian government indicated it may support Sweden’s proposal.

Do you think Iceland will lift the restrictions for new crypto mining farms once it deals with its current power deficit? Tell us in the comments section below.

Foundry Launches Bitcoin Mining Machine Marketplace, US Pool Becomes the World’s Largest Miner

Foundry Launches Bitcoin Mining Machine Marketplace, US Pool Becomes the World's Largest Miner

The firm Foundry Digital announced on Wednesday that the business has launched a bitcoin mining rig marketplace called Foundryx. According to Foundry, the company has access to more than 40,000 mining machines that are ready for resale. In addition to the marketplace launch, the company’s mining operation, Foundry USA, has become the world’s largest bitcoin miner in terms of hashrate.

Mining Pool Foundry USA Becomes Top Bitcoin Miner, Firm Reveals New Mining Machine Marketplace With Access to 40,000 ASICs

At the end of August 2020, Digital Currency Group (DCG) revealed that it pledged $100 million to a cryptocurrency mining firm called Foundry. The company was quietly founded in 2019 and ever since the firm’s inception, it has made significant headway in the bitcoin mining industry.

Foundry Launches Bitcoin Mining Machine Marketplace, US Pool Becomes the World's Largest Miner

As a subsidiary of DCG, Foundry provides machines, capital, consulting, and intelligence to digital assets miners. The company also operates a mining pool called Foundry USA, which is the largest bitcoin mining pool on December 8, 2021, with 16.5% of the global hashrate or 29.83 exahash per second (EH/s) of hashpower.

During the last couple of month’s Foundry USA has been a top pool, consistently commanding a position in the top five mining pools globally. On the same day it commands the largest fraction of SHA256 hashpower worldwide, Foundry announced the launch of a bitcoin mining rig market called Foundryx.

Foundry Launches Bitcoin Mining Machine Marketplace, US Pool Becomes the World's Largest Miner

The marketplace matches buyers and sellers of bitcoin mining machines and customers gain access to the company’s inventory and pricing. The company details that it has secured more than 40,000 machines from Microbt and Bitmain that can be delivered in 2022.

Foundry also says that Foundryx customers can also leverage the company’s enterprise-grade products including services like financing, shipping, logistics, and pooled mining via the company’s mining pool Foundry USA.

Foundry Aims to Provide a Reliable U.S.-Based Secondary Market for Mining Machines

As things like the semiconductor chip shortages and supply chain problems plague the industry, Foundry details that the company aims to make the process of acquiring miners easier. Furthermore, some resellers require hefty deposits in order to purchase quality machines.

“Foundry solves these problems by providing buyers and sellers with a trusted and reliable U.S.-based secondary market for mining machines,” the company’s announcement explains.

“With the industry’s leading clients and partners, from machine manufacturers to mining companies, we have the market knowledge and data to match the right buyers and sellers, at the right price,” Jeff Burkey, VP of Foundry’s business development department said during the announcement.

Foundry’s marketplace follows the company launching a range of services for 20 crypto staking networks. The company has also partnered with a slew of bitcoin mining operations this year including firms like Greenidge Generation Holdings, Bitfams, Hut8, Cleanspark, Core Scientific, Compute North, Bit Digital, Bitdeer, and Hive.

What do you think about Foundry launching a bitcoin mining rig marketplace called Foundryx? Let us know what you think about this subject in the comments section below.