Russia Opens Bitcoin Mining Hub

Russia’s Rosatom Company has launched a 30-megawatt mining facility, 200 miles northwest of Moscow.

Rosatom has spent over $4.8 million at building the plant that will be used in generating the electricity needed for Bitcoin mining. It will sell additional electricity to heavy users and rent space for their systems.

Rosatom is the first giant government entity to collaborate with crypto miners in Russia whose economy is ranked 11th globally as per the estimates of the International Monetary Fund and the World Bank.

Built in 1974, the Kalinin plant is another example for miners in Russia.  Several industrial sites are located near this facility that attracts miners from around the globe.

The cost of electricity in the newly-opened unit would range between 4 to 5 cents per kilowatt-hour, which is considered high, compared to 4 cents in China and Kazakhstan.

Crypto mining requires too much power, which led some governments to crack down on mining following concerns of excessive electricity consumption and financial risk.

Industry experts said crypto miners’ survival relies on their negotiations to obtain the most efficient equipment.

Chinese Bitcoin miners dominate nearly 66% of the global hash rate, which indicates that the industry consumes massive electricity. Thus, Chinese government has seized around 7,000 crypto mining systems that were illegally consuming electric power in Tangshan.

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Rabea Maguid 551 Articles
Rabea Maguid is a journalist completely obsessed with crypto industry. He holds B.A. from Al-Azhar University, and has a background in journalism and economics. Rabea Maguid likes to think about the future in a positive way, and sees blockchain as a potential driver of deep societal change.