A new cryptocurrency mining facility is being built in the Russian Republic of Buryatia with the support of a government company. The infrastructure for the large-scale project, which was implemented by a subsidiary of Russia’s largest mining operator, Bitriver, is already being built.
Bitriver building a large data center for cryptocurrency mining in Buryatia, Siberia
The 100-megawatt data processing center dedicated to minting digital currencies announced this year in Buryatia, a Russian republic in south-central Siberia, the Russian Far East and Arctic Development Corporation (KRDV).
The RBC business news portal, citing a press release, reported that the cost of the project is about 900 million rubles (more than $ 12.3 million). The facility, which will host 30,000 miners, is scheduled to launch in the first half of 2023.
Bitriver-B, a subsidiary of Russian mining giant Bitriver, has already begun construction of buildings and other infrastructure and supply of necessary energy equipment. The company said that the new project will create about 100 job opportunities.
The bitcoin mining farm is located in the village of Mukhorshibir, in the priority development zone “Buryatia”, a region of the republic where a special legal regime has been established in order to facilitate business activities.
KRDV is a management company under 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. Its main task is to assist investment projects in Russia’s Far East and the Arctic.
“Bitriver-B, which has created one of the most important companies for the digital development of Buryatia, has been provided with a wide range of government support tools. These are zero land and property taxes, insurance premiums reduced to 7.6%, and a tax rate,” revealed Dmitry Khmeroev, director of KRDV Buryatia. Reduced income The bitcoin farm will also pay for the electricity it will use at roughly half the normal tariff, the executive added.
The announcement of the major mining project comes after a report last week revealed that the total capacity of Russia’s industrial mining farms exceeded 500 megawatts at the end of 2022. This is despite last year’s slump in the cryptocurrency market and the negative impact of sanctions targeting the country’s mining potential as part of the sanctions imposed on Ukraine invasion.
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