The largest mining farm in Russia 2021

With the rise in the cost of cryptocurrencies, a lot of money came into this business, which contributed to the emergence of industrial-scale mining centers. Huge mining farms are being built in places with cheap electricity, clean and cold air.

Let’s take a closer look at how this business works and which country mines the most bitcoins.

How giant Bitcoin farms work

To build highly profitable industrial mining farms, a number of conditions must be met:

• availability of modern equipment that will be cost-effective for at least 1-2 years. During this period, it is necessary to cover the costs of purchasing it, arranging the data center and other operating costs and get the calculated percentage of profit;
• access to cheap, uninterrupted electricity to reduce overhead costs and keep equipment running around the clock;
• absence of strong pollution in the ambient air to reduce the cost of its filtration;
• cold climate to reduce cooling costs;
• cheap and skilled manpower / engineers to maintain smooth operation and repair emerging breakdowns.

All these conditions exist in China, where large production capacities are concentrated, where the latest ASICs are produced, there are areas with cheap electricity and clean air, and there is also a surplus of labor. In this regard, the world’s largest mining centers are located exactly there, in the province. Liaoning (for example, a mining company HaoBTC).

The concentration of computing power in the hands of Chinese entrepreneurs has reached such a high level that statements are made at the official level in China to ban the mining industry. This is done in order to move this business outside of China and avoid accusations of concentrating capacities and controlling the most profitable cryptocurrencies with a 51% attack.

During the rapid growth of cryptocurrencies in 2017, huge mining farms were built in other countries with cheap electricity, for example, in the USA, Iceland (Genesis Mining), Russia, Switzerland (a farm in the village of Lintal) and others.

As a rule, the creation of a large mining farm is not advertised, but its presence can be established by indirect indications associated with the emergence of a new powerful pool or a sharp increase in the capacity of existing pools.

The principle of operation of giant bitcoin farms is very simple: a control center for a network of “mines” is created, each of which contains hundreds of computing devices, farms on video cards or ASICs. Often, such farms provide cloud mining services and rent out their power, as well as provide operation of large mining pools and receive a small percentage of income from the work of other, small mining farms.

The largest mining farm in Russia

According to information available in the media, the largest mining farm in Russia is Bitbase, located in the city Divnogorsk, Krasnoyarsk region, in the industrial park Marvelous… With a high degree of probability, it can be argued that there are other large mining farms in the Russian Federation, but for a number of reasons related to the reluctance to attract the attention of criminals and controllers. government agencies, they hide their existence.

Full development of a mining company BitBaza provides for an investment of about 3 billion rubles, installation of equipment with consumption 10 mW with further build-up to 120 mW. Such a farm is currently expected to generate more than a thousand bitcoins per month.

Costs and profits of giant farms

Setting up a mining farm is quite a costly affair. The components that perform the calculations are the most expensive – ASICs or powerful video cards. The cost of one modern ASIC or rig with six powerful video cards is several thousand dollars.

In 2019, a lot of high-performance ASICs appeared, due to which the previously profitable coins that were mined on video cards ceased to bring profit. In this regard, the upgrade of equipment on large mining farms is currently carried out through the disposal of failed or unprofitable ASICs and the sale in the secondary market or disposal of components from farms on video cards.

The lion’s share of the costs of operating large mining farms is made up of electricity costs. With a serious scale of this business, daily electricity consumption is tens of megawatts, and monthly payments reach tens of thousands of dollars.

Released mid-2016 Antminer S9, which consumes about 1.3 kW, currently gives a net profit of two dollars a day, at an electricity cost of about 6 cents per kilowatt. A farm of 3,000 such devices (a typical mine of large mining companies in China) has a computing power of 34,500 terahashes and consumes more than 3.9 MW per day. She makes 550 bitcoins per month and only requires payment of about $ 7,500 per month for electricity bills. If you do not take into account the costs of paying for the cost of equipment, labor, security, taxes, maintenance of utilities, cooling systems, ventilation, fire extinguishing and rent, then such a farm brings in income of 160-180 thousand dollars per month, despite the fact that this ASIC is already obsolete.

• Huge mining enterprises have several of these mines, which are constantly being upgraded. One of these farms also exists in Russia, its location is not advertised, but information about its work has repeatedly appeared in Russian and foreign media.

The relevance of the mining business in the Russian Federation

In Russia, the profitability of the payback of a mining business is not as great as in China due to an increase in the price of equipment associated with transport and customs costs. But thanks to the presence of areas where the temperature is low all year round and the availability of cheap electricity, the mining business in the Russian Federation is still profitable, especially when using latest ASICsthat give serious income (tens of dollars a day) in the first months of their appearance.

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