A new crypto mining facility is being built in the Russian Republic of Buryatia with the support of a government-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 builds a large cryptocurrency mining data center in Buryatia, Siberia
A 100-megawatt data processing center dedicated to minting digital currencies will open this year in Buryatia, a Russian republic in south-central Siberia, the Russian Far East and the Arctic Development Corporation (KRDV) announced.
The project’s reference price is about 900 million rubles (more than $12.3 million), the RBC business news portal reported, citing a press release. The launch of the facility, which will house 30,000 mining machines, is scheduled for the first half of 2023.
Bitriver-B, a subsidiary of Russian mining giant Bitriver, has already started the construction of buildings, other infrastructure and the supply of the necessary power equipment. The new venture will create around 100 jobs, the company said.
The bitcoin mining farm is located in the town of Mukhorshibir, in the “Buryatia” Priority Development Area, a territory of the republic where a special legal regime has been established to facilitate business activities.
KRDV is a management company under the Russian Ministry for Far Eastern and Arctic Development and the Plenipotentiary Representative of the President in the Far Eastern Federal District. Its main task is to help investment projects in the Russian Far East and the Arctic.
“Bitriver-B, which creates one of the most important companies for digital development in Buryatia, has received a wide range of government support tools. These are zero taxes on land and property, insurance premiums reduced to 7.6% and a reduced income tax rate,” revealed Dmitry Khameruev, director of KRDV Buryatia. The bitcoin farm will also pay for the electricity it will use at nearly half the regular rate, the executive 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 surpassed 500 megawatts by the end of 2022. That’s despite the cryptocurrency market crash on last year and the negative effect of sanctions directed at the countries of the country. mining potential as part of the sanctions imposed for the invasion of Ukraine.
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