Fun

Russia Expands Its Crypto Mining Capacity, Report Reveals

News Feed - 2023-02-05 08:02:20

Russia Expands Its Crypto Mining Capacity, Report Reveals


The total capacity of crypto mining facilities in Russia has been increasing in the past year, despite the market downturn and sanctions, according to a survey of leading operators. Depressed prices of mining equipment and stronger interest from domestic customers have been identified as major factors for the trend. Miners Prepare for Growth as Total Capacity of Crypto Farms in Russia Reaches 500 MW


The capacity of Russian mining farms has exceeded 500 megawatts (MW) at the end 2022, according to results from a poll among established industry players published by the business daily Kommersant. The beginning of 2023 sets them up for continued growth, on the backdrop of a crypto market recovery, but the expansion could potentially be limited by electricity tariffs and taxes for miners, executives said.


Bitriver, the leader in the group, has eight crypto mining sites with a combined rating of 300 MW. The power of the facilities run by Ural Mining Company (UMC) is 88 MW. Bitcluster owns three 60-megawatt farms, EMCD operates 50 MW of data centers in four different locations while BWCUG has one at 20 MW.


With abundant energy resources and cool climate, the Russian Federation has certain advantages as a mining destination. However, the ongoing clash with the West over the war in Ukraine has affected the industry, with sanctions hitting Russia’s mining potential in order to limit its ability to use cryptocurrencies to circumvent financial restrictions.


But the penalties and the state of the crypto economy have had different effects on the business of the Russian mining companies. Bitriver, which was specifically targeted by U.S. sanctions, has actually doubled the number of its data centers and available capacity, realizing several large-scale projects in Russian regions, its founder Igor Runets told Kommersant.


Meanwhile, BWCUG has reduced its mining capacity. The company explained new European and North American clients are reluctant to use Russian facilities, despite the lower costs. The operator also highlighted the unclear prospects for crypto mining in terms of legislation. A bill designed to regulate mining in Russia was submitted to parliament in November but is yet to be adopted.


Alisa Tsukanova, marketing director at EMCD, remarked that the profitability of mining business may decrease if the government introduces special electricity tariffs and taxes for coin minting enterprises. Speaking to the daily Izvestia, the Chairman of the State Duma Committee on the Financial Market Anatoly Aksakov talked about two options — either imposing a levy like the single tax on imputed income, with a rate in the range of 7.5 – 15%, or taxing profits at 20%.


The survey has been conducted after a study revealed in October last year that bitcoin mining revenue in Russia grew 18 times in four years before declining steeply in the second quarter of 2022. Another piece of research published in August established that the electricity consumption of Russian miners had increased 20 times since 2017. Tags in this story Bitriver, capacity, Crypto, crypto farms, crypto market, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Miners, mining, mining companies, mining farms, Mining Industry, mining operators, mining sector, recovery, Russia, russian, Sanctions


Do you think Russia’s crypto mining industry will continue to grow despite the challenges? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Next Bitcoin Mining Difficulty Change Estimated to Decrease as Block Times Have Lengthened MINING | 2 hours ago Bitcoin Difficulty Surges 4.68%, Taps New All-Time High; Metric Set to Surpass 40 Trillion MINING | 6 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons, hlopex / Shutterstock.com Previous articleNext Bitcoin Mining Difficulty Change Estimated to Decrease as Block Times Have Lengthened Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItTony Hawk"s Latest NFTs to Come With Signed Physical Skateboards


Last December, the renowned professional skateboarder Tony Hawk released his “Last Trick” non-fungible token (NFT) collection via the NFT marketplace Autograph. Next week, Hawk will be auctioning the skateboards he used during his last tricks, and each of the NFTs ... read more.Fidelity Investments Launches Crypto, Metaverse ETFs — Says "We Continue to See Demand" Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Australia to List Bitcoin ETF After 4 Clearinghouse Participants Commit to Meet Stringent Margin Terms Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing

News Feed

Cleanspark Reveals Texas Expansion — Bitcoin Miner Plans to Add 500 MW of Mining Power
Cleanspark Reveals Texas Expansion — Bitcoin Miner Plans to Add 500 MW of Mining Power Bitcoin miner Cleanspark has revealed the company is expanding operations in Texas with up
'Whales are preparing for the next altcoin rally' — CryptoQuant founder
Vince Quill3 hours ago"Whales are preparing for the next altcoin rally" — CryptoQuant founderAccording to pseudonymous crypto trader Mags, the altcoin market broke out after 525 days of accumulation and will likely res
Crypto Lender Nexo Terminates Interest Payments on New Deposits From US Clients
Crypto Lender Nexo Terminates Interest Payments on New Deposits From US Clients Following the U.S. Securities and Exchange Commission (SEC) charging the crypto lending platform Blo
Crypto Businesses Ask 27 EU Finance Ministers to Loosen Disclosure Requirements
Crypto Businesses Ask 27 EU Finance Ministers to Loosen Disclosure Requirements Forty-six European crypto businesses and organizations have asked finance ministers in 27 European c
Indian Parliament to Consider Bill That Creates Digital Rupee While Banning Cryptocurrencies in Current Session
Indian Parliament to Consider Bill That Creates Digital Rupee While Banning Cryptocurrencies in Current Session The Indian government has finally moved forward w
Terraform Labs to reopen Shuttle Bridge, destroy LUNA tokens
Amaka Nwaokocha10 hours agoTerraform Labs to reopen Shuttle Bridge, destroy LUNA tokensThese developments indicate TFL’s proactive efforts to tackle Terra’s challenges and restore trust and stability within the ecosy
Savannah Fortis14 minutes agoMusic with AI elements can win a Grammy, Recording Academy CEO says in reportThe CEO of the Recording Academy, known for its yearly Grammy awards, reportedly clarified that music with AI-crea
Bitcoin’s impending ‘death cross’ might not be ‘so deadly’ for BTC bulls — Analyst
Nancy Lubale1 hour agoBitcoin’s impending ‘death cross’ might not be ‘so deadly’ for BTC bulls — AnalystBitcoin appears on the verge of confirming a death cross, but one analyst says historical data suggests
Market Update: Bitcoin Nears $13,000, Holds Record-Breaking 87-Day Streak Above $10K
Market Update: Bitcoin Nears $13,000, Holds Record-Breaking 87-Day Streak Above $10K Cryptocurrency markets have seen intense gains on Wednesday after the paymen
AssangeDAO member Silke Noa says $37M spent to rescue Assange
Josh O"Sullivan10 hours agoAssangeDAO member Silke Noa says $37M spent to rescue AssangeSilke Noa calls for detailed accounting from the Wau Holland Foundation on the $37 million spent on Assange’s legal defense.778 To
Prashant Jha10 hours agoYuga Labs addresses ApeFest ‘vision damage’ issue, community calls out poor managementThe Bored Ape community was not very impressed by the Yuga Labs’ reaction to the mishap, calling out its
Helen Partz11 hours agoMicroStrategy buys $147M worth of Bitcoin, now holds 158K BTCMicroStrategy bought the latest Bitcoin stash at an average price of $27,053 per coin, or 9% lower than the average purchase price of it