Bitcoin mining farms prefer Siberia for low energy costs

Abandoned factories from the Soviet period in Russia were brought back to life as cryptocurrency mining farms. The large hydropower plants in Siberia (another legacy of the USSR) have attracted the miners with cheap electricity.

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1 Optimal climate for bitcoin mining farms

2 Russia vs China

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Energy-friendly prices and the cool natural climate make Siberia an international mining hub, with miners from Europe, Asia and the US moving to the area.

For example, Bratsk hydroelectric station in eastern Siberia is now fueling another energy-consuming industry: bitcoin mining.

Optimal climate for bitcoin mining farms

Several large mining farms set up locations in Bratsk, an industrial city on the banks of the Angara River. They take advantage of the region’s low temperatures, which reduce cooling costs and abundant and cheap hydroelectricity.

Bratsk is an example of how the ruins of the Soviet empire became fertile ground for the crypto industry. In recent years, miners have taken over some of the local plants to convert them.

“The surplus of electricity in Russia is huge, due to the closure of some of the Soviet installations and the fact that, in general, energy consumption has become much more efficient over time,”

said Dmitry Ozersky, CEO of Eletro Farm, a mining company that builds a mining farm in Kazakhstan.

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Russia vs China

As a result, Russian bitcoin mining farms now have a total capacity of 600 megawatts, accounting for nearly 10 percent of the total 7 gigawatts of power supporting the worldwide bitcoin network, said Ozersky, a former banker and top manager at the corporation. Russian state, Rusnano. Its estimation is based on data from producers of specialized mining chips, known as ASIC.

By comparison, Chinese farms, widely regarded as the world’s mining capital, account for about 60 percent of the total network capacity, according to a recent Coinshares report.