New Crypto Mining Facility Investor Worth $116 Million Shys Away from Norway After Tax Changes

A foreign investor had planned to invest $116 million to build a crypto mining facility in Norway. However, it does not seem to be going forward because the country’s government has decided to exempt crypto mining centers from receiving tax subsidies.

According to Erik Vennemore of NTC Services, “It was about one billion [NOK] in investment. Everything was planned, and the data center should have been in operation as of July next year. Then the statement came from the government, and then it stopped the next way.” The country’s decision to deny data centers from receiving tax subsidies came from the Christian Democratic Party.

The party takes the position that such centers use a great deal of power in comparison to other types of data centers. Lars Haltbrekken, an environmentalist and parliamentary representative called bitcoin “the dirtiest form of cryptographic output.” He also added, “It requires a lot of energy and generates large greenhouse gas emissions globally.”

It is highly likely that the removal of the tax subsidy for mining operations will impact miners’ profits. Vennemore is concerned that the lack of subsidy could cause investors to move their investments from Norway to other countries, such as Denmark, Finland, and Sweden. He stated, “These countries offer so far low fees to all types of data centers, including those who use crypto.”

Currently, in Norway, it costs approximately $7,700 to mine one bitcoin. Other countries, such as China and Saudi Arabia offer much more affordable mining operations, at $3,100 per coin. According to Jon Ramvi of blockchain advisory group Blockchangers, “The only function of more miners is securing the network further. It means that if you want to hack the network, you will need to have more computational power than the other machines in the network. However, the bitcoin network has been extremely secure for over a year now so there should be no need for more miners.”

Mining operations in Norway essentially have two options. They can either stay and pay the higher tax, or they can leave. It’ll be interesting to see what happens.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

Bitcoin Exchange Guide News Team
B.E.G. Editorial Team is a gracious group of giving cryptocurrency advocates and blockchain believers who want to ensure we do our part in spreading digital currency awareness and adoption. We are a team of over forty individuals all working as a collective whole to produce around the clock daily news, reviews and insights regarding all major coin updates, token announcements and new releases. Make sure to read our editorial policies and follow us on Twitter, Join us in Telegram. Stay tuned. #bitcoin

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer


Please enter your comment!
Please enter your name here


Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Chinese Developers to Use Telegram's Open-Sourced TON Blockchain To Launch Their Own Network

Chinese TON developers announce the launch of their variation of the TON blockchain after successive launches by TON Lab’s Free TON platform and...

JP Morgan Chase Set to Pay $2.5 Million in Crypto Class-Action Lawsuit for Overcharging

The largest bank in the United States, JP Morgan Chase has agreed to pay $2.5 million to settle a class-action lawsuit related to charging...

60% of Bitcoin Supply Not Moved in a Year, What Does it Say About the Next Bull Run?

May is coming to an end and bitcoin is looking to stay above $9,500, ending the month with about 8% returns. The market sentiments are...

E-Commerce Giant, Amazon, Patents Blockchain Authentication Of Accepted Consumer Products

The world-leading e-commerce platform, Amazon Technologies Inc., filed a patent on blockchain technology for proving the authenticity of consumer goods in its online marketplace....

Compound Roadmap to Full Decentralization to Begin with Issuance of COMP to Their Community

Compound will now issue COMP tokens to the users of their protocol in a bid to achieve full decentralization. They have released an...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today