Russian BTC miner Dmitry Marinichev wants to increase Bitcoin mining across Russia and he has therefore sought ground in the Nadvoitsky Aluminum Plant in Karelia so we are reading more about it in the bitcoin news today.
The U.S. Office of Foreign Assets Control had placed the NAZ parent company Rusal under sanctions in 2018 since the owner Oleg Deripaska who had ties to the Kremlin was named a ‘’Designated Russian Oligarch’’ by the US Treasury. Deripaska has since given up on his control over the stakes in Rusal and the sanctions against the company were lifted by the production at Nadvoitsy has not resumed.
Now as a part of the old production site which was leased to the RMC, Rusal’s representatives confirmed that apart from RMC, there are two others who rent parts of the plant but the details were not revealed. According to the Russian BTC miner, RMC is interested in creating a digital hub based on NAZ which will sell computing power across the world. He said:
‘’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.’’
For those who make a living in bitcoin and crypto mining, the neural networks and artificial intelligence development could prove to be very useful. As per the RMC representative, Marinichev partnered with the UK based crypto exchange Cryptonex and he intends to grow the company to power 20 percent of the world’s bitcoin mining activity which is very ambitious, to begin with.
One block of bitcoin is mined every ten minutes, 4320 blocks can be mined per month and the current block reward is 12.5 BTC. Since the price of Bitcoin is now $9420, the total income from mining will be $507.6 million per month and 20 percent of that is about $100 million. The Russian Association of cryptoeconomics and blockchain president Yuri Pripachkin believes that crypto mining is still beneficial but he says that everything depends on the cost of electricity:
“In Moscow, electricity prices are quite high, and only because of this, the placement of mining equipment in another place may turn out to be more profitable.’’
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