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Worldwide geopolitical stability has declined noticeably in recent years. With many European nations boosting their armed forces, the possibility of a major armed conflict – potentially a global one – presents a substantial risk to Bitcoin (BTC) and cryptocurrency mining infrastructure across both Europe and Eurasia.
Current estimates indicate that Germany accounts for approximately 5% of Bitcoin’s total hashrate. Norway contributes around 2%. Notably, Russia hosts about 11% of the global Bitcoin hashrate. These computing resources could be severely threatened in the event of widespread warfare. Bitcoin and other digital asset infrastructures in these regions could suffer direct hits or unintentional damage. Regardless, a large-scale European war would almost certainly reduce cryptocurrency production in the affected area, whether due to escalating energy prices, rationing of power, or other war-related disruptions.
Many of these mining operations rely on renewable energy sources like hydroelectric, wind, solar, and geothermal power. They are frequently interconnected with regional power grids and heating systems, making them, in some respects, essential infrastructure.
Bitcoin Miners in Norway
Norway offers a clear illustration of how local economies can become intertwined with Bitcoin mining operations. For example, the shutdown of a Bitcoin mining facility in one Norwegian community led to increased annual electricity costs of $300 for each household.
The mining operation had previously covered 20% of the grid fees for the area. Its departure caused power bills to surge. This event emphasizes the growing importance of Bitcoin and cryptocurrency mining as a form of essential infrastructure and, consequently, as a potential target. An opposing force might view disrupting mining operations as a legitimate wartime strategy.
Bitcoin and Crypto Miners Across Europe
The infrastructure supporting Bitcoin and other cryptocurrencies throughout Europe could face significant repercussions. The majority of Europe’s Bitcoin mining activities are concentrated in Norway, Sweden, Finland, Germany, Austria, and Iceland.
Norway serves as Europe’s primary mining center, representing about 3% of Bitcoin’s global hashrate. Several mining firms maintain operations there. Kryptovault, for instance, operates multiple facilities in northern Norway. Northern Data, though based in Germany, manages several mining sites in Norway, including the Lefdal Mine data center.
Sweden, which has increased its military expenditure by 40% amid rising tensions with Russia, also hosts numerous mining locations. These include facilities operated by Northern Data, notably their site in Boden. Hive Blockchain, a Canadian firm, also runs mining operations in Sweden.
In Finland, Terahash’s Genesis Project is noteworthy for providing heat to a district heating network serving a town of 12,000 people, potentially classifying it as critical infrastructure. The heat generated by the mining operations provides both hot water during the summer and heating for homes during the winter.
Terahash collaborates with industrial parks in Germany to integrate solar photovoltaic (PV) systems, battery storage, and mining operations to enhance grid stability and heat provision. Northern Data, headquartered in Frankfurt, also operates a mining location in Germany. Terahash Energy has also initiated pilot projects to explore this concept in both Germany and Finland. Germany, of course, is undertaking a highly publicized rearmament initiative that has garnered parliamentary approval.
The Austrian Power Grid & 21Energy Pilot program uses Bitcoin mining as a means to utilize excess renewable energy, thereby bolstering the nation’s power grid. Genesis Mining established its first mining facility in Iceland in 2013. The company has expanded to other locations, including Latvia and Lithuania, where smaller operations are present. Miners also operate in Ireland and Greece.
Bitcoin and Crypto Miners in Russia
Significant Bitcoin mining operations exist within Russia as well. BitRiver operates one of the largest data centers in the former Soviet Union in Bratsk, Siberia. In 2022, the U.S. Office of Foreign Assets Control (OFAC) sanctioned BitRiver for allegedly facilitating sanctions evasion. However, in October 2024, BitRiver partnered with the Russian Direct Investment Fund (RDIF) to further expand its Bitcoin mining and AI computing capabilities to countries within the BRICS economic alliance.
OFAC designated 10 Russia-based subsidiaries of Bitriver AG for their activities within Russia’s technology sector. BitRiver subsequently transferred legal ownership to a holding company based in Switzerland.
Gazpromneft, the oil subsidiary of Russia’s state-owned gas giant Gazprom, operates a Siberian operation that utilizes associated natural gas at an oil drilling site in the Khanty-Mansiysk region of northwestern Siberia to generate electricity for mining.
According to the St. Petersburg International Economic Forum, Gazpromneft partnered with BitRiver to establish mining facilities at oil fields. The Russian Mining Company (RMC) is located in Karelia, in northern Russia. It is being transformed from a repurposed Rusal metal factory, which closed due to U.S. sanctions in 2018, into a Bitcoin mining farm.
Bitcoin and Crypto Must Adapt to the Threat of War in Europe
A widespread European conflict poses a threat to the infrastructure supporting Bitcoin and other cryptocurrencies. Should wartime conditions escalate and mining in Europe become untenable, firms could potentially relocate to the United States. However, the U.S. could also become entangled in the European war or other conflicts, potentially involving China and Iran, which currently account for 11.5% and 4% of the global Bitcoin hashrate, respectively. The U.S. West Coast suffered attacks during World War II, and it could similarly face attacks in a World War III-style scenario.
If mining conditions deteriorate in the U.S., a substantial portion of Bitcoin and cryptocurrency mining activity will likely migrate to Latin America and parts of Asia, possibly permanently. Nations such as El Salvador and Bhutan are already proactive state actors in Bitcoin mining and could attract an influx of miners from the West if a global conflict were to erupt.