coinedition.com
Bit Digital, a leading bitcoin mining company, has announced its expansion to Iceland as a strategic move to mitigate regulatory risks and the potential impact of a proposed crypto-mining tax by the U.S. government.
In an interview with The Wall Street Journal, Bit Digital CEO Samir Tabar said the company aims to diversify operations by housing 2,500 newly purchased Bitcoin mining machines worth $5 million in Iceland.
Notably, this move to install new computers outside the United States is happening for the first time in two years. The CEO was quoted saying:
What we’ve done in the past is the machines come to the United States, but now instead of doing that, we have to look at different jurisdictions due to instability.
According to the report, once Iceland’s newly established mining machines come on board, the country and Canada will house approximately one-fifth of Bit Digital’s mining infrastructure. The remaining devices will continue to operate within the United States.
Mining computers solve complex mathematical problems to unlock new Bitcoins and generate revenue. However, the energy consumption associated with crypto mining in the U.S. approached the level required to power about 300,000 homes in some countries.
Consequently, the U.S. has decided to tax crypto miners to cover the societal costs associated with their energy-intensive mining activities. Mining companies would be required to pay 30% of the cost of the electricity used for mining.
Nonetheless, pro-crypto firms have argued that they have adopted cleaner energy sources. Specifically, Bit Digital has affirmed that more than two-thirds of its mining operations are carbon-free.