Article Image

IPFS News Link • Russia

Businessman Outright Buys Two Electric Power Stations to Do Bitcoin Mining in Russia

• https://news.bitcoin.com

China has dominated the bitcoin mining industry for a couple of years, but fears of a government clampdown are signaling now might be the best time to enter the market elsewhere in the world. And someone just made a big bet that Russia, with its cold weather and plentiful fossil fuel energy sources, is the place to establish a mining venture.

Also Read: Big Chinese Bitcoin Miners Are Turning to Canada

Serious Mining in Russia

Businessman Buys Two Power Stations for Bitcoin Mining in Russia

Power station in Perm, Russia

An investor has acquired a couple of electric power stations in Russia specifically to be used for bitcoin mining, the Russian business daily Kommersant reported. It is purported to be the first time ever someone bought a whole power station for such a venture in the vast and natural resource rich country.

One power station is located in the Perm region, on the western slopes of the Middle Ural Mountains, and the other is located in the nearby Russian Republic of Udmurtia. The two facilities will be used to create a data center and a bitcoin mining farm, the newspaper reported. The deal was completed for an estimated 160 million rubles (worth approximately $2.8 million).

The reported buyer of the power stations, businessman Aleksey Kolesnik, has indirectly confirmed the acquisition. However, he said that cryptocurrency mining operation will only start after the Russian government approves a needed law to make it completely legal. The bill the Russian Ministry of Finance is currently drafting to regulate cryptocurrency and ICOs in Russia is expected to be adopted in March 2018.

Miners Go North

Businessman Buys Two Power Stations for Bitcoin Mining in Russia

Bitcoin mining farm in Moscow

Chinese miners appear to be preparing for an exodus from their once hospitable homeland. As efficient mining requires cheap electricity and cold weather, locations that offer both are said to be the main benefactors, from Iceland to Canada. But, there are reasons to believe that the Russian government will be more open than others to hosting bitcoin mining operations in their territory.


AzureStandard