Russian Energy Corporations Discuss Partnerships With Bitcoin Miners

Russian media has reported that two of the nation’s major energy corporations, EvroSibEnergo and Gazprom, are in discussions with Russian bitcoin miners who are hoping to strike a deal on cheap power. EvroSibEnergoI has reportedly issued statements articulating that although no contracts have been officially been signed, the corporation is open to the possibility of entering into partnership with cryptocurrency miners.

Also Read: Russia Proposes Restricting Bitcoin to Qualified Investors

Russia’s Largest Energy Company Has Received “Dozens of Requests” From Russian Bitcoin Miners

Russian media outlets have reported that two major energy corporations have been in discussions with Russian bitcoin miners. The news comes just weeks after Russian state officials announced plans to launch an ICO for a public-private partnership seeking to rival China’s dominance over the bitcoin and cryptocurrency mining industries

According to RT, EvroSibEnergo has received “dozens of requests“ from Russian bitcoin miners seeking to reduce the power costs associated with mining. EvroSibEnergo has stated that “there are over 70 manufacturing facilities with ready-made infrastructure, including quick access to electrical grids and substations, provided with cheap electric power”, which are located throughout Siberia, the Urals, and European parts of Russia.

Miners May Still Be Legally Required to Purchase Their Power Through Russia’s Wholesale Energy Markets

Russian miner, Timofey Ra, is reported to have stated that power costs account for 30 per cent of the costs associated with mining bitcoin, and 15 per cent of the costs associated with generating ethereum. Ra alleges that some miners have already struck preferential deals with power companies, citing per kilowatt prices as low as two rubles ($0.03 USD) – a 62.5% saving off the average price of 4.5 rubles per kilowatt ($0.08 USD).

Dailystorm has reported that despite the private deals between Russian bitcoin miners and energy companies, miners will still be legally obliged to purchase their power through the nation’s wholesale market. Dailystorm states that “by law[,] more than 25 MW of power should be sold through the wholesale market… Miners require 100 kW to 30 MW of power… thus, even if the contract is concluded at a reduced price, it will be necessary to make additional payments in the wholesale market.”

Do you think that Russia will be able to rival China’s dominance of the bitcoin mining industry? Share your thoughts in the comments section below!

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