Finland is gaining traction in the cryptocurrency mining sector due to its advantageous climate, abundant renewable energy, and supportive political and economic framework. These conditions are vital as they contribute to the overall efficiency and sustainability of the mining operations, though considerations such as energy costs, regulatory policies, and infrastructure are also key to the industry’s success.
Low-Energy Benefits for Miners
Co-founder of Once Mining, Lennu Keinanen emphasizes that particularly low energy costs in Finland are a major draw for Bitcoin and cryptocurrency miners. This competitive edge has caused a clustering of the Bitcoin mining industry within the Scandinavian region.
Finland’s untapped potential in the Bitcoin mining market is becoming more apparent when compared to neighboring countries like Norway and Sweden, which have seen crypto miners relocating to escape high electricity costs. Notably, in 2023, Finland experienced negative electricity prices for the first time in nearly two decades, attributed to its diverse and abundant energy sources.
Analysts at Montel News project that Finland’s production of renewable energy could rise to 25 TWh by 2030, which would continue to drive down energy costs. For the energy-intensive crypto mining industry, low energy costs are essential for maintaining profitability.
Renewable Energy Incentives and Implications
Finland’s government is actively promoting wind energy production through subsidies. Yet, the resulting expansions in wind energy can lead to unpredictable energy outputs, subsequently causing volatile electricity pricing.
The Finnish Tax Administration has determined that cryptocurrency mining operations will be subject to taxation on both capital gains and the income generated. Despite the nascent state of this sector, Keinanen anticipates a burgeoning industry with significant interest in establishing mining facilities in Finland and ongoing exploration efforts.