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State-Backed Crypto Mining Farm Under Construction in Russia’s Buryatia – Mining Bitcoin News
A new crypto mining facility is being built in the Russian Republic of Buryatia with the support of a state-affiliated company. Construction of the infrastructure for the large-scale project is already underway, carried out by a subsidiary of Russia’s largest mining operator, Bitriver.
Bitriver Building Large Data Center for Cryptocurrency Mining in Buryatia, Siberia
A 100-megawatt data processing center dedicated to minting digital coins will open this year in Buryatia, a Russian republic in south-central Siberia, the Russian Far East and Arctic Development Corporation (KRDV) announced.
The price tag of the project is around 900 million rubles (over $12.3 million), the business news portal RBC reported, citing a press release. The launch of the facility, which will host 30,000 mining machines, is planned for the first half of 2023.
Bitriver-B, a subsidiary of Russia’s mining giant Bitriver, has already started the construction of buildings, other infrastructure and the delivery of the necessary power equipment. The new venture will create around 100 jobs, the company said.
The Bitcoin mining farm is located in the village of Mukhorshibir, in the priority development area “Buryatia”, a territory of the republic where a special legal regime has been established to facilitate entrepreneurial activities.
KRDV is a management company that reports to the Russian Ministry for the Development of the Far East and the Arctic and the President’s Plenipotentiary Representative in the Far East Federal District. The main task is to help investment projects in Russia’s Far East and the Arctic.
“Bitriver-B, creating one of the most important enterprises for the digital development of Buryatia, has received a wide range of state support tools. This is zero tax on land and property, insurance premiums reduced to 7.6% and reduced income tax,” revealed Dmitry Khameruev, Director of KRDV Buryatia The bitcoin farm will also pay for the electricity it will use at almost half of the regular tariff, the manager added.
The announcement of the major mining project comes after a report revealed last week that the total power capacity of Russia’s industrial mining farms exceeded 500 megawatts by the end of 2022. That despite the decline in the crypto market last year and the negative impact of sanctions targeting the country’s mining potential as a part of penalties imposed over the invasion of Ukraine.
Do you think Russia will support the construction of more crypto mining farms in the future? Tell us in the comments section below.
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