State-backed Crypto Mining Farm under Construction in Russia’s Buryatia
A new crypto-mining complex is being built in the Russian Republic of Buryatia with the support of a state-owned company. The construction of infrastructure for a large-scale project is already being carried out by a subsidiary of the largest Russian mining operator, Bitriver.
Bitriver builds a large cryptocurrency mining data center in Buryatia, Siberia
A 100-megawatt data center dedicated to minting digital coins will open this year in Buryatia, a Russian republic in south-central Siberia, the Far East, and the Arctic Development Corporation (KRDV).
The cost of the project is about 900 million rubles (more than $12.3 million), according to the RBC business news portal, citing a press release. The launch of the facility, which will house 30,000 mining machines, is scheduled for the first half of 2023.
Bitriver-B, a subsidiary of the Russian mining giant Bitriver, has already started building buildings, other infrastructure and supplying the necessary power equipment. The new facility will create about 100 jobs, the company said.
The bitcoin mining farm is located in the village of Mukhorshibir, on the territory of advanced development “Buryatia”, on the territory of the republic, where a special legal regime has been established to facilitate entrepreneurial activity.
KRDV is a management company reporting to the Ministry of the Russian Federation for the Development of the Far East and the Arctic and the Plenipotentiary Representative of the President in the Far Eastern Federal District. Its main task is to help investment projects in the Far East and the Arctic.
Bitriver-B, which creates one of the most important digital development enterprises in Buryatia, has received a wide range of state support tools. These are zero taxes on land and property, insurance premiums reduced to 7.6% and a reduced income tax rate,” said Dmitry Khameruev, director of the KRDV Buryatia. The Bitcoin farm will also pay for the electricity it will use at nearly half the normal rate, the executive added.
The announcement of the major mining project comes after a report showed last week that the total capacity of industrial mining farms in Russia exceeded 500 megawatts at the end of 2022. This is despite the decline in the cryptocurrency market last year and the negative impact of sanctions aimed at mining potential as part of the sanctions imposed for the invasion of Ukraine.
Do you think Russia will support the construction of new mining farms in the future? Tell us in the comments section below.
Denial of responsibilityA: This article is for informational purposes only. It is not a direct offer or solicitation to buy or sell, nor is it 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 directly or indirectly liable for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.
Credit : news.bitcoin.com