Global cryptocurrency miners are increasingly moving their devices to Russia and the CIS in pursuit of lower energy prices.
Igor Rontes, founder and CEO of the Russian mining company BitRiver, told local news agency Kommersant on Thursday that the company is actively expanding its energy capacity to meet the growing demand from American and European investors.
According to management, BitRiver ran out of idle capacity in its data centers after it reserved all its capacity over the next 18 months. During this period, the company plans to place the mining equipment on one site, the total capacity of which is estimated at 1 GWh.
BitRiver, which provides the largest Bitcoin (BTC) hosting services in Russia and the CIS, is currently building two new data centers in Russia, including an 80MW plant in Krasnoyarsk and a 300MW center in the Republic of Buryatia. The company expects to produce 100 MW by fall 2021 and meet only half of the projected demand.
The CEO noted that the increased demand is mainly coming from the United States and Europe, as investors are partially shifting their business from China, Africa and Latin America in search of lower energy prices. But Runtes said that the main reason for the increased demand is the continuous rise in the cryptocurrency as prices reach new highs. BitRiver has already severely reduced demand and created a large number of bitcoin miners in December 2020.
Nikita Vasev, founder of the TerraCrypto Forum dedicated to the mining market in the CIS countries, said that many miners are actively moving their business from China and the United States to the CIS countries. The contractor indicated that the increasing demand comes from investment strategies aimed at distributing energy between different continents. Vasif said mining in the United States and Canada is more expensive due to logistics and electricity costs.
With the equivalent rise in mining bonuses, the cryptocurrency is becoming more popular than ever, which has led to a significant increase in the power consumption of the cryptocurrency. As previously mentioned, Bitcoin energy consumption has reached an all-time high since late 2020, with annual consumption estimated at more than 75 TWh in a record period.