Russia Building $12.3M Crypto Mining Farm in Buryatia, Siberia

• A 100-megawatt data processing center dedicated to the minting of digital coins is being built in Russia’s Buryatia Republic.
• The project is supported by a government-affiliated company and will cost 900 million rubles (over $12.3 million).
• The facility will create about 100 jobs and be powered at almost half the regular tariff.

State-backed Crypto Mining Farm in Construction in Buryatia

A new large-scale crypto mining facility is being constructed in the Russian Republic of Buryatia with support from a government-affiliated company, the Arctic Development Corporation (KRDV). Carried out by a subsidiary of Russia’s largest mining operator, Bitriver, it will have a power capacity of 100 megawatts and be used to mine digital coins.

Cost and Launch Date

The project will cost approximately 900 million rubles (over $12.3 million), with construction already underway for infrastructure and necessary power equipment. It is scheduled for launch during the first half of 2023, creating around 100 jobs in the process.

Legal Regime Established to Facilitate Project

The crypto mining farm is situated in Mukhorshibir village within the “Buryatia” Priority Development Area which has established a special legal regime designed to facilitate entrepreneurial activities such as this one. This includes zero taxes on land and property, reduced insurance premiums at 7.6%, and income tax rate discounts for Bitriver-B, its subsidiary carrying out construction work.

Overall Mining Capacity in Russia Increasing

The news comes shortly after reports that total power capacity of industrial mining farms across Russia exceeded 500 megawatts by end 2022 despite market downturns last year and sanctions which targeted its mining potential as part of punitive measures against it internationally.

Conclusion

This state-backed cryptocurrency mining farm in Buryatia aims to provide job opportunities while utilizing specific benefits granted due to its geographic location for more efficient operations than usual. With construction already underway and plans for launch during first half 2023, it stands as an example of ongoing progress towards increased cryptocurrency adoption on an international scale.