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There is good news for the cryptocurrency mining industry in Russia. The country is reportedly working on the expansion of the cryptocurrency mining industry in the country.
According to reports, the country is doing that by reportedly increasing its mining capacity.
Russia to Increase Mining Capacity
Kommersant, a local business reporting firm carried out a survey and confirmed the mining capacity that Russian mining firms had reached in 2022.
The report shared by Kommersant revealed that by the end of 2022, the mining capacity in Russia had reached and crossed the 500 MW target.
Even in the year 2023, the growth has continued to take place. The mining sector is constantly growing larger and the mining capacity of the country is growing bigger with every passing day.
The reports confirm that the country is still increasing its mining capacity and it may continue happening given the current circumstances.
In the year 2023, the growth rate has even increased for the mining capacity in Russia. With the fast recovery of the cryptocurrency industry in the year 2023, the mining sector has started to grow at an enormous rate.
Although the mining sector is growing in Russia, there are chances that it may get limited by the electricity tariffs. Another factor that may hinder the mining sector’s growth in the country would be the taxes on miners.
Information about the Mining Sector
There are multiple mining groups in Russia but the largest and the leading mining group in the country is Bitriver.
The particular group is responsible for utilizing 300 MW at multiple mining sites that it currently manages. According to details, the group comprises eight mining sites for cryptocurrencies.
The second-largest group is powered by Ural Mining Company (UMC), which is responsible for generating 88 MW.
Then the third major group is Bitcluster. The particular group is responsible for operating three mining facilities that utilize 60 MW.
The fourth major group is EMCD which has four different mining locations and it reportedly utilizes 50 MW.
The next major mining group is BWCUG, which is operating a single mining farm that utilizes 20 MW of electricity.
Advantages for Russian Mining Farms
No matter how many sanctions the west imposes on Russia, it does not change the fact that the country has the best conditions to offer for cryptocurrency mining.
The country has an abundance of energy resources that it has to offer to the cryptocurrency mining farms in the country. Even the electricity costs are very reasonable and less compared to other countries.
Then comes the climate of Russia which is cool and provides the best condition for the mining industry. These are the advantages that Russia has and the mining industry is well aware of that.
This is the reason why despite several sanctions being filed against Russia, the mining sector is constantly growing in the country.
The mining firms do not want to lose the opportunity of mining cryptocurrencies in the most favorable and profitable environment.
Why is Russia Doubling Down on Mining Expansion?
Russia has been hit hard by the west due to its invasion of Ukraine. The European Union and the United States alongside its companions have filed several sanctions on Russia.
The country’s economy has taken a huge hit and is now finding ways to get around these sanctions. The country wants to circumvent the sanctions filed by the west and has found cryptocurrencies as the perfect safe haven.
The country is well aware that the west is trying to cut its trade with the rest of the world. Therefore, Russia has decided to double down on its efforts to expand the mining sector.
Russia is, therefore, increasing its mining capacity which may help it generate strong income from the mining farms.
Russia may also get into mining in order to make cryptocurrencies and generate profits from that.
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