Russia’s Largest Crypto Mining Firm Expands Operations in Siberia

BitRiver, the largest industrial crypto mining company in Russia, has announced that it is building a new 100 megawatt (MW) data center in the Republic of Buryatia, a region in Eastern Siberia. The new facility, which will be mainly used for cryptocurrency mining, is expected to be operational by the second half of 2024.

BitRiver-B: A New Subsidiary for Energy-Intensive Computing

The new data center is being constructed by BitRiver-B, a subsidiary of BitRiver that specializes in high-performance and energy-intensive computing. According to the company, the project will cost over $15.15 million and will create about 120 jobs for local specialists.

The data center will be located in the city of Ulan-Ude, the capital of Buryatia, which borders Mongolia to the south. The region is known for its abundant natural resources, including hydroelectric power, which is essential for crypto mining operations.

BitRiver-B claims that the new facility will be the largest data center in Buryatia and the Far Eastern Federal District, which comprises nine federal subjects of Russia. The company also says that the data center will offer various digital services, such as cloud computing, artificial intelligence, and blockchain.

BitRiver: A Leader in Green Crypto Mining

BitRiver is the leading provider of colocation services for crypto mining in Russia and the Commonwealth of Independent States (CIS). The company operates several data centers across the country, with a total capacity of over 300 MW.

BitRiver prides itself on being a green crypto mining company, as it sources most of its electricity from renewable sources, such as hydropower and nuclear power. The company’s CEO, Igor Runets, has stated that Russia’s energy balance is one of the greenest in the world, and that mining Bitcoin in Russia is more profitable than in the US, especially after the next halving event.

BitRiver also aims to foster the development of the crypto industry in Russia and the CIS, by providing educational and consulting services, as well as supporting regulatory initiatives. The company is a member of the Industrial Mining Association (APM), a non-profit organization that represents the interests of crypto miners in Russia.

BitRiver: Facing Challenges and Opportunities

Despite its achievements, BitRiver has also faced some challenges in its operations. In April 2022, the company was added to the US Treasury’s sanctions list, along with several other Russian entities, for allegedly engaging in malicious cyber activities. The sanctions prohibit US persons from doing business with BitRiver and freeze any of its assets under US jurisdiction.

However, the company has vowed to continue its work on what it calls a “landmark investment project for the Far East and all of Russia”. The company has also received support from some of its partners, such as Bitfury, a global leader in blockchain and crypto hardware and software solutions.

Moreover, BitRiver sees opportunities for growth in the crypto mining sector, as the demand for high-performance and energy-intensive computing increases. The APM estimates that the entire sphere of such computing in Russia could consume up to several tens of GW by 2035. BitRiver plans to expand its capacity to meet this demand, and to offer its clients the best services and solutions in the market.