Global cryptocurrency mining operators are increasingly relocating their devices to Russia and the Commonwealth of Independent States how they chase lower energy prices.
Igor Runets, Founder and CEO of the Russian crypto mining company BitRiverTold the local Kommersant news agency on Thursday that The company is actively expanding its energy capacity to meet growing demand from US and European investors.
According to the executive, BitRiver no longer has enough capacity in its data centersafter fully reserving all of his energy for the next 18 months. During this time, The company expects to move mining machinery with an estimated total output of 1 GWh.
BitRiver, which operates the largest brokerage services for bitcoin mining (BTC) in Russia and the CIS region, is now building two new data centers in Russia, including an 80 MWh plant in Krasnoyarsk and a 300 MWh plant in the Republic of Buryatia. The company expects to provide 100 MWh by autumn 2021, which will only cover half of the expected demand.
The CEO noted that the growing demand is mainly coming from the US and Europeand investors are shifting some of their activities from China, Africa and Latin America in search of lower energy prices. However, the main reason behind the surge in demand is the ongoing rally in cryptocurrencies with prices breaking new recordsRunets specified. BitRiver has already resorted to the demand aggressively and launched a large number of Bitcoin miners in December 2020.
Nikita Vassev, Founder of the TerraCrypto forum with a focus on the CIS mining market, Many miners are actively moving their activities from China and the United States to the CIS countries. The executive suggested that the growing demand for investment strategies stems from the They want to distribute power to different continents. According to Vassev, mining operations in the US and Canada are more expensive because of logistics and energy costs.
In the midst of a parabolic surge in rewards earned from mining Crypto mining is more popular than everthat caused a significant increase in energy consumption of cryptocurrencies. As previously reported, Bitcoin’s power consumption was the highest since late 2020and the estimated annual consumption remained above 75 TWh for a record period.