Igor Runets, the CEO of Bitriver, a large crypto mining company, made it known in an interview that more crypto mining operations are relocating to Russia.
The reason Russia is now becoming a preferred choice for crypto mining operations is its low cost of electricity consumption. Compared to Latin America, China and Africa, Russia is known to charge relatively lower amounts for electrical bills.
Major Signals
- Miners prefer Russia to other world rigs as electricity costs are relatively low.
- Russia set to establish two more crypto mining facilities to contain the increase in demand.
- Wholesale Chinese Cryptocurrency mining customers are on a rise.
Above are electricity prices in U.S. dollars per kilowatt-hour
Crypto mining machines depend on electricity for their effective use. This constant demand for electricity leads to a high supply of electricity which in turn ends in a monthly electric bill which runs into thousands of dollars.
Now, a lot of crypto miners are working towards making more profit and one way to achieve this is by cutting down costs. Since electricity bills cost a lot, crypto mining operations have opted to move to where they can get good electricity for less. Here, Russia seems to be the ideal choice.
Igor Runets told Kommersant that Bitriver's current electric capacity is taking the lead. He revealed that the company is set to attain a capacity of 1 Gigawatts(GW) within the next 18 months. Russia appears to welcome the latest changes to its crypto market as some crypto mining companies have started putting plans in place for the establishment of crypto mining infrastructure.
Bitriver, for example, is planning to set up two crypto mining facilities with a total capacity of 80 Megawatt(MW). The firm also intends to build a mining facility in the Siberian region of Russia with an electric holding capacity of 300 Megawatt(MW). Although, during its initial stage, the establishment will begin with a capacity of 100 Megawatt(MW).
One of the cofounders of Bitcluster, Sergey Arestov, predicts a strong increase in demand beginning from the fall of 2021. This demand is already seen steadily as the company has experienced an increase in the number of wholesale Chinese customers. This increase is directly connected to the rise in the price of Bitcoin.
Currently, even domestic mining companies are witnessing a higher number of applications for crypto mining hosting.
