A Russian company uses the Siberian city of Norilsk above the Arctic Circle to mine bitcoins. Bitcluster, the owner of the crypto mining operation, plans to expand the company’s operations after the facility’s launch in late 2020. According to the company’s website, the data center will get electricity rates as low as $ 0.03 per kilowatt hour (kWh ).
Mining of precious crypto assets in the Arctic Circle
This week, the Russian mining operation Bitcluster was featured in a Bloomberg video report that emphasizes the company’s Norilsk bitcoin mine. The city of Norilsk is considered one of the world’s northernmost settlements and is known for housing the metal mining company MMC Norilsk Nickel PJSC. MMC Norilsk Nickel is the world’s largest palladium producer and also produces massive quantities of nickel, copper and platinum.
Now Bitcluster is bringing the Arctic region a new type of precious asset mining by setting up shop mining cryptocurrency in Norilsk.
Bitcluster co-founder Vitaly Borschenko indicated in an interview that Norilsk’s bitcoin mine is being contracted by international interests around the world. Despite the fact that Norilsk’s arctic region is extremely cold, the temperatures benefit bitcoin mining activities as it aids the cooling aspect of the process, according to Bitcluster.
Bitcluster’s webpage states that the company is using a special canopy to protect the facility from the cold hallway. “The warm air from the miners is mixed to prevent snow from falling,” Bitcluster noted.
Electricity in the Arctic is 25% cheaper than the Russian grid, Norilsk produces its own electricity through natural gas and hydropower
The Russian company says it is also using Antminer S19s and they have built modular data centers to house the ASIC devices. The Bloomberg video report also shows that the company is getting very cheap electricity from mining in Norilsk.
According to the recent reportElectricity is 25% cheaper than anywhere else in Russia as Norilsk produces its own electricity. Natural gas and hydropower are the most dominant electricity sources in the Arctic Circle. Bitcluster’s site notes that the company gets electricity for as little as 2.75 rubles or $ 0.039 per kWh.
The report also indicates that the bitcoin mining operation uses an abandoned Norilsk Nickel factory that closed in 2016. “The place is perfect for crypto mining: it’s cold and the area has [a] power supply that is not linked to any of Russia’s electricity grids, ”explained Borschenko.
Bitcluster also claims that in addition to metal mining company Norilsk Nickel, the bitcoin mining operation will be the second largest power consumer in the Norilsk region. The company is using recycled shipping containers to house the Antminers who dedicate hashpower to the Bitcoin network. At current exchange rates, the network difficulty and $ 0.039 per kWh, an Antminer S19 (110 Th / s) will produce $ 25 per day in bitcoin.
What do you think of the bitcoin mining activities in the Arctic Circle region of Norilsk? Let us know what you think about this topic in the comments below.
Image Credits: Shutterstock, Pixabay, Wiki Commons, Bitcluster Website,
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