A 30,000-Machine Mining Farm Will Be Built By A Russian State-backed Enterprise

Key Points:

• A government-affiliated corporation is helping to build a new crypto mining plant in the Russian Republic of Buryatia.
• Buryatia, a Russian republic in south-central Siberia, will establish a 100-megawatt data processing facility devoted to digital currency minting this year, the Russian Far East and the Arctic Development Corporation (KRDV) stated.

On February 11, the Republic of Buryatia, one of the Russian Federation’s autonomous republics, began construction of a new bitcoin mining facility with the backing of the Russian Far East and Arctic Development Corporation (KRDV), which is controlled by the Russian government.

Bitriver-B, a subsidiary of Bitriver, Russia‘s largest mining company, is already building infrastructure for the mega-project. The Russian Ministry for the Development of the Far East and the Arctic and the President’s Plenipotentiary Representative in the Far Eastern Federal District oversee the business news portal RBC,KRDV. Its primary mission is to assist investment initiatives in Russia’s Far East and Arctic.

“Bitriver-B, which develops one of the most significant firms for Buryatia’s digital growth, has received a wide variety of government assistance instruments. These are 0% taxes on land and property, 7.6% insurance premiums, and a lower income tax rate,” said Dmitry Khameruev, director of KRDV Buryatia. The bitcoin farm will also pay for power at almost half the current rate, according to the executive.

The huge mining project announcement comes after research last week indicated that the overall power capacity of Russia’s industrial mining farms will top 500 megawatts by the end of 2022. Despite the cryptocurrency market’s collapse last year and the detrimental impact of sanctions targeting the country’s mining capacity as part of the penalties imposed for the invasion of Ukraine, this is the case. According to a press release, the project cost roughly 900 million rubles (more than $12.3 million). The complex, which will contain 30,000 mining equipment, is set to open in the first half of 2023.

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