Russia is expanding its crypto mining capacity, report revealed-mining Bitcoin messages
Russia is expanding its crypto mining capacity, report revealed-mining Bitcoin messages
According to a survey among leading operators, the total capacity of the crypto mining systems in Russia rose last year despite the market decline and sanctions. Low prices for mining equipment and a stronger interest of domestic customers were identified as the main factors for this trend.
miners are preparing for growth, since the total capacity of the crypto farms in Russia reaches 500 MW
The capacity of the Russian mining farms exceeded 500 megawatts (MW) at the end of 2022, according to the results of a survey published by the business newspaper under established industry actors. The beginning of 2023 is preparing for further growth against the background of recovery in the cryptoma market, but the expansion could possibly be limited by electricity tariffs and taxes for miners, said executives.
Bitriver, the group leader, has eight crypto mining locations with a total output of 300 MW. The power of URAL Mining (UMC) is 88 MW. Bitcluster has three 60 megawatt farms, EMCD operates 50 MW data centers at four different locations, while Bwcug has one with 20 MW.
With plenty of energy resources and a cool climate, the Russian Federation has certain advantages as a mining destination. However, the persistent examination of the West because of the war in Ukraine has affected the industry sanctions Mining potential to limit its ability to use cryptocurrencies to circumvent financial restrictions.
But the punishments and the condition of the crypto economy had different effects on the business of the Russian mining companies. Bitriver, that was specifically targeted by US sanctions and actually doubled the number of its data centers and the available capacity And realized several major projects in Russian regions, his founder Igor Runs told Kommersant.
In the meantime, Bwcug has reduced its mining capacity. The company said that, despite the lower costs, new European and North American customers hesitate to use Russian institutions. The operator also referred to the unclear prospects for crypto mining in relation to legislation. A draft law for regulating mining in Russia was in November ins Parliament, but still stands out of accepted .
Alisa Tsukanova, marketing director at EMCD, noticed that the profitability of the mining business could decrease if the government introduces special electricity tariffs and taxes. In a conversation with the daily Izvestia, the chairman of the State Duma Committee for the financial market, Anatoly Aksakov, spoke about two options-either the collection of a delivery, such as the uniform tax on calculatory income with a set between 7.5 and 15 % or a taxation profit at 20 %.
The survey was carried out after a study in October last year showed that the Bitcoin mining revenue in Russia rose by 18 times in four years before they declined sharply in the second quarter of 2022. Another study published in August showed that the electricity consumption of Russian miners has increased 20 times since 2017.
Do you think that Russia's crypto mining industry will continue to grow despite the challenges? Share your expectations in the comment area below.
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