Iceland, renowned for its vast network of hydroelectric and geothermal plants, holds the distinction of being the world’s largest energy producer per capita. However, despite its robust crypto mining industry, which has made it the foremost Bitcoin hashrate producer globally, Iceland’s Prime Minister Katrín Jakobsdóttir is charting a different course for the nation’s future.
In a recent interview with the Financial Times, Prime Minister Jakrínsdóttir expressed her preference for prioritizing increased food production and the redirection of renewable energy away from the crypto mining sector and towards households and other industries. She emphasized the significant portion of Iceland’s green energy consumed by data centers hosting crypto mining operations, stating, “Bitcoin is an issue worldwide…but data centers in Iceland use a significant share of our green energy.”
Iceland’s allure to crypto miners lies in its 100% renewable electricity, insulated from global fuel price fluctuations. However, with electricity becoming scarcer due to high demand and limited new power plant construction, research firm Luxor predicts a stagnation in the country’s crypto mining industry.
Prime Minister Jakrínsdóttir’s focus on agriculture stems from a desire to reduce reliance on imported food, signaling a strategic shift in national priorities.
Meanwhile, as Bitcoin’s upcoming block reward halving approaches, there is a surge in global demand for last-generation crypto miners owned by U.S.-based companies, according to a recent Bloomberg report. These miners, exemplified by the Bitmain Antminer S19 series, are being repurposed for growing mining operations in Africa and South America, where energy costs are lower. After the halving, each machine is expected to fetch only around $350, a significant decline from their peak price of up to $11,500.
While China and Iceland were early adopters of significant crypto mining industries, the next wave of development is shifting towards South America and Africa. Chinese miners are eyeing Ethiopia, attracted by its low energy costs despite concerns over political instability.