Construction of a crypto mining facility is taking place in the Republic of Buryatia with the help of a government-affiliated firm. A subsidiary of Russia’s biggest mining operator, Bitriver, is currently constructing the infrastructure required for the massive project.
Bitriver Establishes Huge Cryptocurrency Mining Center in Buryatia, Siberia
A 100-megawatt data processing center devoted to digital currency production is set to be opened in Buryatia, a region situated in South-Central Siberia, Russian Far East and the Arctic, according to the Russian Development Corporation (KRDV). The project is estimated to be worth approximately 900 million rubles (more than $12.3 million), based on a press release.
The launch of the facility, which will be capable of hosting 30,000 mining machines, is expected to take place in the first half of 2023. Bitriver-B, the subsidiary of Russia’s biggest mining firm Bitriver, has already begun to build the necessary buildings and other infrastructure, as well as provide the essential energy equipment. The company noted that the enterprise will create approximately 100 employment opportunities.
Mukhorshibir, a city in the region, is already home to a bitcoin mining farm. The facility is located within the “Buryatia” Priority Development Area, an area where a special legal regime has been established to enable business activities.
KRDV is a management company under the Russian Ministry for Far Eastern Arctic Development and the Plenipotentiary Representative of the President in the Far Eastern Federal District. Its primary purpose is to finance projects in the Russian Far East and the Arctic.
“Bitriver-B, which creates one of the most important enterprises for digital development in Buryatia, has received a broad range of government support tools. These include zero taxes on land and property, reduced insurance premiums to 7.6% and a decreased income tax rate,” said Dmitry Khameruev, KRDV Director in Buryatia. The executive noted that bitcoin farms may be able to pay almost half of the usual fee for the electricity they use.
The announcement of the major mining facility follows a report last week that revealed the total power capacity of Russia’s top industrial mining farms had surpassed 500 megawatts by the end of 2022. This is in spite of the cryptocurrency market crash in the last year, and the devastating effect of sanctions on some countries of the region. As part of the sanctions against the invasion of Ukraine, mining capacity has been significantly reduced.
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