Oil company in Russia announces alliance to promote Bitcoin mining in the country – DiarioBitcoin

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Oil company in Russia announces alliance to promote Bitcoin mining in the country - DiarioBitcoin By Angel Di Matteo @shadowargel

Is about Gazpromneft, Russia’s third largest oil company, which is allied with BitRiver to promote mining Bitcoin locally with the energy derived from its activities.

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  • Gazpromneft announce alliance with BitRiver in Russia.
  • Mining centers will be installed near oil fields.
  • According to BitRiver, Gazpromneft will contribute up to 2 gigawatts for cryptocurrency mining.
  • The announcement comes at a difficult time for cryptocurrencies in Russia.

The Russian-based state gas company, Gazpromneft, announced an alliance with the mining company BitRiver, with which they will take advantage of the electrical energy derived from oil activities to generate crypto funds, especially in Bitcoin.

Gazpromneft announce alliance with BitRiver

This was announced by the team BitRiver in a statement published yesterday, in which they indicate that the company is committed to providing the infrastructure for the data centers, while Gazpromneft It will provide the necessary energy to guarantee operations. The idea is to build the crypto mining stations near new oil fields on Russian territory.

It is expected that this alliance between BitRiver Y Gazpromneft provide crypto mining plants with an intensive flow of electrical energy, producing up to 2 gigawatts to fully guarantee the mining of cryptocurrencies based on Proof-of-Work (PoW).

In this regard, the CEO of BitRiver, Igor Runets commented:

“During the next two years, BitRiver intends to implement projects to create its own data centers for energy-intensive computing with power of scale up to 2 [gigavatios]included [gas de petróleo asociado]which will also provide a high and stable energy consumption”.

Cryptocurrencies and mining in Russia

The announcement of this alliance comes in the midst of a particularly complicated moment for Russia, since due to the armed incursion that the country is promoting in Ukrainian territory, the nation is exploring financing mechanisms that may represent new income after the international sanctions imposed. by countries, organizations and high caliber companies.

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The announcement also comes at a complex time for cryptocurrencies within the Soviet country, as the government is pressing for them to be properly regulated for the reasons stated above, while the central bank of the nation remains firm in prohibiting its commercialization and use due to the problems it would entail for the local economy.

From the international level, for many regulators the concern arises as to whether cryptocurrencies could work as a mechanism for the Russian government to circumvent sanctions against it. However, various reports assure that the transparency and traceability of the operations, added to the little liquidity that the market has with respect to other lines of business, would not allow the nation to see there a mechanism to face its current situation.

Profitability of cryptocurrency mining

Another detail pointed out by experts and analysts has to do with the profitability of crypto mining based on Pow, especially at this time when most projects implement different mechanisms to be able to use models that are more environmentally friendly.

For now, the main exponent that operates under pow it is Bitcoin, currency that after the fall of the market would be seeing a very dark panorama for those who carry out mining operations. Analysts assure that with a BTC that is around USD $20,000, it would not be profitable to pay for mining today, especially for those who carry out these operations on a small and medium scale.

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In this regard, an analysis presented by the team of CryptoRank exposes:

“Due to a significant drop in the price of BTC in recent months, mining has become less profitable. For some Bitcoin miners, it might not even be profitable right now.”


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Font: Finbold, Cointelegraph, CoinDesk

Angel Di Matteo version / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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