Bitcoin profitability in the Nordics rebounds as weather turns milder

Bitcoin mining profitability rates rebounded in the Nordic countries as the weather turned milder, resulting in bearish day-ahead power prices, S&P Global Commodity Insights Renewable Bitcoin Quarq Spread Index data showed.

The Norway NO4 region saw bitcoin mining profitability flip to in-the-money of Eur24.48/MWh Dec. 7 from Eur31.96/MWh out-of-the-money Dec. 6, while Sweden SE1 saw a rebound to only Eur2.53/MWh from negative Eur31.96/MWh.

Sweden's 1.1-GW Ringhals-4 reactor returned to service Dec. 4 after an unplanned stoppage Nov. 29. The outages added some tightness to Nordic and Baltic power markets amid colder weather, with Sweden's SE3 bidding zone settling at Eur152/MWh for Dec. 4, while Finland remained highest on the day at Eur155.63/MWh.

Milder temperatures in Spain resulted in higher profitability rates for miners in the region, according to the Renewable Bitcoin Quarq Spread index, compared to Germany and France.

German and French power markets remained tight on high demand amid lower temperatures, and lower renewable generation.

In the US Northeast, bitcoin profitability remained relatively flat on the week, while power prices saw rises during Dec. 5-7 in line with lower temperatures and stronger demand. The New York Independent System Operator Zone E Mohawk Valley day-ahead on-peak settled at $56.16/MWh on Dec. 7, the highest price since late July.

In the Pacific Northwest, rates were rising, rebounding from the negative territory, as power prices dropped significantly on abundant hydro generation, predominant to the region.

Platts data showed Mid-C day-ahead on-peak dropped from the triple digits seen on Nov. 28-30 to price in the $60-$80/MWh range on Dec. 4-8, as the US National Weather Service showed heavy rain was expected to continue across the region, applying downward pressure on regional power prices.

In ERCOT, profitability was varied on the week, reaching its highest point at $61.63/MWh on Dec. 6 at ERCOT West Zone, as power prices trended lower following weaker natural gas and strong wind generation.

Bitcoin Energy Consumption Index was assessed at 389.36 MWh Dec. 7, down from the December-to-date peak at 392.78 MWh.

Platts is part of S&P Global Commodity Insights. Platts Bitcoin Renewable Quarq Spreads are assessed across 42 locations in Europe and the US.