A Russian company is using the Siberian city of Norilsk, located above the Arctic Circle, to mine Bitcoin. Bitcluster, the owner of the crypto mining business, plans to expand the company’s business after launching the facility at the end of 2020. According to the company’s website, the electricity price for the data center is as low as $0.03 per kilowatt hour (kWh).
Mining precious crypto assets in the Arctic Circle
This week, Russian mining company Bitcluster made an appearance in Bloomberg Video report Highlighted the company’s Norilsk Bitcoin mine. The city of Norilsk is considered one of the northernmost settlements in the world and is famous for hosting the metal mining company MMC Norilsk Nickel PJSC. MMC Norilsk Nickel is the world’s largest producer of palladium and it also produces large amounts of nickel, copper and platinum.
Now, Bitcluster has brought a new type of precious asset mining to the polar regions by establishing a store in Norilsk to mine cryptocurrency.
Vitaly Borschenko, the co-founder of Bitcluster, detailed in an interview that the Norilsk Bitcoin Mine is being contracted by international interests around the world. Although the Arctic region of Norilsk is very cold, according to Bitcluster, temperature is good for Bitcoin mining operations because it helps the cooling process.
Bitcluster’s webpage details the company’s use of special canopies to protect the facility from the cold corridors. Bitcluster pointed out: “The warm air from the miners is mixed together to prevent snow.”
Polar electricity is 25% cheaper than the Russian grid. Norilsk creates its own electricity through natural gas and hydropower
The Russian company said it also used Antminer S19s, which built a modular data center to house ASIC equipment. The Bloomberg video report also showed that the company obtained very cheap electricity through mining in Norilsk.
According to recent reports, since Norilsk has its own electricity, electricity is 25% cheaper than other parts of Russia. Natural gas and hydropower are the main sources of electricity in the Arctic Circle. Bitcluster’s website states that the company obtains electricity for as little as 2.75 rubles (approximately $0.039 per kilowatt hour).
The report also indicated that the Bitcoin mining business used an abandoned Norilsk nickel factory, which was closed in 2016. “This place is very suitable for crypto mining: the weather is cold and the area [a] Power source that is not linked to any grid in Russia. “Borschenko said.
Bitcluster also claimed that, second only to metal mining company Norilsk Nickel, Bitcoin mining business will become the second largest electricity consumer in the Norilsk region. The company uses a redesigned shipping container to house ant miners who dedicate hash functions to the Bitcoin network. At the current exchange rate, the difficulty of the network, and the price of $0.039 per kilowatt hour, the Antminer S19 (110 Th/s) will generate $25 in Bitcoin per day.
What do you think of the Bitcoin mining business in Norilsk Arctic Circle? Let us know your thoughts on this topic in the comments section below.
Picture Credits: Shutterstock, Pixabay, Wiki Commons, Bitcluster website,
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