Bitcoin miner Bit Digital expanding their operations to Reykjanesbær

Bit Digital, a US bitcoin mining company, will expand its crypto mining operations here in Iceland. The decision comes amid concerns that the government of President Joe Biden plans to tax cryptocurrency.

Mining of cryptocurrency is a highly energy-intensive activity, but the CEO of Bit-Digital tells The Wall Street Journal that roughly two-thirds of the company’s mining operations are carbon-free. He also says that increased operations in Iceland would use hydropower and geothermal energy.

A press release from Bit-Digital states that the company has already entered into an agreement with the Icelandic company GreenBlocks ehf. for hosting an electronic mining operation in Reykjanesbær, Iceland, at approximately 8.25 megawatts.

2,500 computers at end of month

If all goes to plan, one-fifth of the company's mining machinery will be hosted in Canada and here in Iceland. The company has already purchased 2,500 new machines that will be used in the e-mining business, according to Samir Tabar, the company's president.

All of these machines will be housed in Iceland. The cost of the machinery is USD 3.6 million or ISK 508 million. The computers are expected to be in Iceland by the end of this month.

New proposals from the U.S. government for introducing a tax on cryptocurrency follow the collapse of FTX. Western governments have long been concerned about the heavy electricity consumption of electric coin companies, saying such activities raise the cost of electricity for Americans as companies share electricity networks with the nation.