Bitcoin Mining to Ramp Up Dramatically in Russia
Bitcoin mining is heating up as several groups are ramping up production, with one Russian company aiming for 20% of the world’s total.
Bitcoin mining has definitely changed over time. Regular people used to be able to mine BTC with their desktop computers, but those days are long over. Cryptocurrency mining is now the province of major companies, such as Bitmain. It seems that the competition between crypto mining outfits is heating up, with one Russian company shooting for hitting 20% of the world’s Bitcoin mining total.
In Mother Russia, Bitcoin Mine You!
The company in question is the Russian Mining Company (RMC), and its CEO is Dmitry Marinichev, the country’s Putin-appointed internet ombudsman. The company is setting up shop in a metal factory in the province of Karelia. The factory has been closed since 2018 due to U.S. sanctions.
Of the plant and RMC’s plans, Dmitry Marinichev says:
Now the plant for Rusal is unprofitable, the electricity supplied to it is practically not utilized, and people living in the single-industry town near the plant have nowhere to work. Our idea is to redesign the plant and sell its computing power as a service, that is, provide an IT service.
One of those services is cryptocurrency mining, and the plant is so large, it could account for a full 20% of the entire world’s Bitcoin mining production. The company managed to raise US$43 million during an ICO in 2017.
RMC is not alone in trying to grab a larger slice of the cryptocurrency mining pie. Argo Blockchain in the United Kingdom has doubled its order of mining rigs as it seeks a “significant expansion” to its capabilities. The company has ordered 10,000 Antminer T17s, worth a total of $9.51 million. When the new mining rigs arrive in December, the company will boast a total of 17,000 Bitcoin mining machines. Its total hash power is then expected to increase by 240%. China-based Canaan Creative is looking to score through a NASDAQ initial public offering. The second-largest BTC mining device manufacturer is hoping to raise $400 million through the IPO. The company says it will use the funds to pay off debts and fund research into blockchain technology and AI.
The decision by Canaan Creative comes a short time after Chinese President Xi Jinping spoke favorably about the country becoming the leading force in advancing blockchain technology. However, China is still hostile to decentralized cryptocurrencies, shutting down exchanges back in 2017, but the country’s central bank is reportedly close to releasing its own state-controlled cryptocurrency. While some critics are saying that the profitability of Bitcoin mining is down considerably, it seems a number of companies are willing to spend big to increase their stake in the industry.Images courtesy of Wikimedia/Vpetrov-71 and Pixabay.
Heiko Closhen, Entrepreneur