Dozens of Companies From China and the EU are Interested in Mining Bitcoin in Russia
40 Chinese and EU-based companies have expressed an interest in setting up cryptocurrency mining operations in Russia. The country has become a popular mining location due to its low prices for electricity and plentiful energy reserves.
Bitcoin mining is no longer profitable for individuals but it’s definitely still worth pursuing for large companies with plenty of resources at their disposal. Mining farms require a lot of electricity, however, so it’s important to choose a suitable location for such a setup. As it happens, Russia seems to be a preferred location for a lot of companies as the country is already home to many cryptocurrency farms and has plenty of excess electricity to sustain even more. As a result, dozens of companies from China and the European Union are reportedly now flocking towards Russia to start new cryptocurrency mining ventures.
Back in August, the country announced the formation of the Russian Association of Blockchain and Cryptocurrency, otherwise known as RACIB. Just as its name suggests, the association aims to bring together all Russian organizations and companies interested in cryptocurrency and blockchain technology. In addition, anyone from outside the country who wants to mine in Russia needs to apply to the RACIB in order to do so. Well, at least as far as major mining operations are concerned. RACIB President Yuri Pripachkin recently announced that 40 Chinese and EU-based companies have expressed an interest in mining Bitcoin in Russia and have applied for permission to set up their equipment.
The president also mentioned that Russia already has hundreds of cryptocurrency factories across its territories and there’s plenty of room for even more. As interest in large-scale mining operations across Russia began to grow over the past year, the RACIB was founded to handle legislation and taxation for foreign investors wanting to set up their own Bitcoin farms. Chinese and EU representatives are already preparing investment proposals, which will be evaluated by the RACIB and forward to the Russian Ministry of Economic Development and the Ministry of Energy.
The Ministry of Energy announced back in late 2016 that the total energy output of power plants in Russia is somewhere around 244.1 GW. However, the maximum load registered during that time was only about 154.3 GW, which leaves plenty of free capacity to spare. Combine the 90 GW of free capacity with the fact electricity prices are cheaper in Russia compared to many other countries and it’s easy to see why foreign investors would want to set up shop there.
According to some estimations, placing several hundred mining farms with a capacity of 3 MW would yield somewhere around 0.5 BTC per day. At current exchange rates, that’s about 200,000 Russian rubles or approximately $3,500 USD. That’s a pretty good return on investment. Moreover, the operations are likely to become even more profitable in the future as Bitcoin continues to grow in value.