Bitcoin News Today: Geopolitical Tensions Threaten 3% of Global Bitcoin Hashrate in Europe

The global geopolitical landscape has deteriorated significantly over the past few years, posing a clear and present danger of a Third World War to European and Eurasian Bitcoin (BTC) and crypto mining infrastructure. This escalating tension could lead to targeted or collateral damage to Bitcoin and crypto infrastructure in the regions, potentially decreasing mine production due to high energy costs, energy rationing, or other disruptions.

Bitcoin mining operations in Europe and Eurasia often rely on renewable energy sources such as hydropower, wind, solar, and geothermal energy. These operations are frequently integrated with local grids or heating systems, making them critical infrastructure. For instance, in Norway, the shutdown of a local Bitcoin miner led to a significant increase in power bills for residents, highlighting the role of Bitcoin miners as critical infrastructure and potential targets in a conflict scenario.

Europe's Bitcoin mining infrastructure is concentrated in several countries, including Norway, Sweden, Finland, Germany, Austria, and Iceland. Norway, in particular, is Europe's largest mining hub, accounting for around three percent of Bitcoin’s global hashrate. Several mining companies operate in the country, such as Kryptovault and Northern Data. Sweden, which has increased its military spending by 40 percent amid tensions with Russia, hosts many mining sites operated by companies like Northern Data and Hive Blockchain. Finland is home to Terahash’s Genesis Project, which supplies heat to a district heating network, making it potentially critical infrastructure. Terahash also partners with industrial parks in Germany to combine solar PV, battery storage, and miners for grid stability and heat supply. Northern Data, based in Frankfurt, operates a site in Germany, and Terahash Energy has launched pilot projects testing this concept in Germany and Finland. Austria and Iceland also host significant mining operations, with companies like Genesis Mining operating in Iceland.

Russia is another major player in Bitcoin mining, with significant operations in Siberia. BitRiver, one of the largest data centers in the former Soviet Union, operates in Bratsk and has been sanctioned by the U.S. Office of Foreign Assets Control (OFAC) for aiding sanctions evasion. BitRiver has partnered with the Russian Direct Investment Fund (RDIF) to expand Bitcoin mining and AI computing facilities to BRICS countries. Gazpromneft, the oil subsidiary of Russia’s state-owned gas giant Gazprom, runs a Siberian Operation at an oil drilling site in the Khanty-Mansiysk region, employing associated natural gas to generate electricity for mining. Russian Mining Company (RMC) is located in Karelia, northern Russia, and is being designed from a repurposed Rusal metal factory into a Bitcoin mining farm.

A wider war in Europe threatens Bitcoin and crypto mining infrastructure. If wartime conditions spread and European mining becomes prohibitive, firms could look to the United States. However, the U.S. might also end up involved in the European war and other conflicts, including those against China and Iran, which are home to significant portions of the Bitcoin hashrate. If mining conditions become unfriendly in the U.S., it is likely that much of the Bitcoin and crypto mining will move to Latin America and parts of Asia, quite possibly forever. Countries like El Salvador and Bhutan are already at the forefront of state actors who are mining Bitcoin and could see an influx of miners from the West if global conflict breaks out.