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Waste heat, the new business opportunity for Bitcoin miners in Finland

Bitcoin miners can sell waste heat to the country’s district heating network, notes a recent report on Hashrate Index.

Although Finland is not listed as one of the most attractive destinations for Bitcoin miners, due to high electricity costs, this reality may change in the coming years.

A report published by Bitcoin mining analyst Jaran Mellerud on the Hashrate Index platform highlights that waste heat generated by cryptocurrency equipment could be a great trading opportunity for Bitcoin miners.

According to Mellerud, Bitcoin network miners could sell their waste heat to the country’s heating network, which is mainly powered by a cogeneration system.

The mining equipment used to extract cryptocurrencies from the blockchain network has the ability to transform electrical energy into thermal energy, since they generate a large amount of hot air that can be recycled and used to generate heat to thousands of homes.

In 2021, The Wall Street Journal published an article about how Bitcoin miners exploit their equipment to heat homes, buildings, and even greenhouses.

Finland, the uncharted Bitcoin mining frontier in Europe

Finland’s energy potential also represents a growth opportunity for Bitcoin miners.

As Mellerud explains, nuclear energy is the main source of energy in Finland, generating 35% in 2022, according to data from the report. Likewise, hydroelectric power stations, biomass and wind farms are other main sources that provide energy in the country.

Because of all this energy potential still untapped by Bitcoin miners, Mellerud considers Finland to be “Europe’s unexplored Bitcoin mining frontier.”

The bitcoin mining expert also pointed out that Finland’s great ability to produce energy from non-fossil sources could improve the attractiveness of the country for Bitcoin minersespecially for those with ESG objectives.

Bitcoin mining capacity in Finland currently stands at 40 megawatts (MW), which is approximately 0.3% of the global Bitcoin hashrate. However, over the next two years, Finland’s bitcoin mining capacity could match Norway’s and exceed 300 MW, said the expert.

Benefits of Bitcoin Mining for Finland

Finland could take advantage of Bitcoin mining to stabilize its energy grid, Mellerud said. Like the state of Texas (USA), Finland could make energy demand more flexible thanks to the network of miners who exploit the Bitcoin blockchain.

The rapid growth of nuclear, wind and solar capacity in Finland has led to demand flexibility issues. Finland cannot easily regulate its nuclear power base load, while the amount of power from wind and solar sources is weather dependent, volatile and unstable. This problem could be solved with bitcoin mining.

As the expert pointed out, in the state of Texas, bitcoin miners benefit from energy costs while ensuring network stability and flexibility. After conducting a study, Texas A&M University recognized that Bitcoin mining is becoming critical to stabilizing the state’s energy grid.

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