Opening this year, the facility will have 30,000 crypto mining machines. It will employ 100 workers and consume 100 megawatts of electricity from the grid.
A moratorium on crypto mining has been declared in recent months in parts of the United States and Canada. Russia, on the other hand, took a sharp turn. The government provides tax incentives to companies that want to invest in crypto mining. As a result, with the direct support of the government and an investment of 12 million dollars, a new cryptomining center opens in the eastern part of Siberia.
A according to local media The state-owned Corporation for the Development of the Far East announced the launch of a cryptomining center in Buryatland, a republic located in the eastern part of Siberia, which is part of the Russian Federation.
The facility will operate with 30,000 mining machines. It will employ 100 workers and consume 100 megawatts of power from the electrical grid. The facility will open its doors in the first half of 2023 and will be owned and operated by BitRiver, Russia’s largest crypto mining provider.
The mining center will also enjoy a number of government incentives, from zero land and property taxes to reduced income tax rates. Unit prices of electricity for the cryptomining company will also be halved.
The government support can be explained by the legal status of Burjátföld, which has the status of “area under development”. With this, it has become a special economic zone, which thus attracts domestic and foreign investments. The Far East Development Company, which specializes in supporting investment projects, is a subsidiary of the Ministry of Development of the Far East and the Arctic.
Since the outbreak of the war in Ukraine and the subsequent financial sanctions, the Russian government has changed its anti-crypto stance, especially regarding cryptomining. In July 2022, state-owned gas giant Gazprom Neft partnered with BitRiver to supply cryptomining facilities with electricity generated from gas released during oil extraction. As part of the collaboration, BitRiver has begun major infrastructure developments in the oil fields where Gazprom provides electricity generated by burning flare gas for crypto mining facilities.
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