The third-largest oil producer in Russia has joined forces with BitRiver, a bitcoin mining enterprise primarily based in Switzerland, to mine bitcoin using spare sources.
BitRiver will assemble the digital infrastructure on the Russian oil fields of Gazpromneft as a part of a brand new partnership. Associated petroleum fuel, a sort of pure fuel present in oil deposits, can be used to generate the ability wanted to make crypto.
Gazpromneft will present vitality to BitRiver’s knowledge facilities, underneath an settlement struck on the St. Petersburg International Economic Forum on Friday.
According to an announcement, these vitality sources can be positioned in both new oil wells the place the transportation infrastructure has but to be established, or in distant fields with excessive transportation necessities.
Notably, BitRiver shouldn’t be a brand new participant in Russia’s energy business. The 2017-founded bitcoin miner has a 100-megawatt knowledge heart powered by renewable vitality in Bratsk, Siberia.
BitRiver, First Crypto Mining Company Santioned By US
In April of this yr, the U.S. Treasury Department added BitRiver to the Office of Foreign Asset Control (OFAC) record, alleging that the crypto mining firm is aiding “Putin’s brutal war of choice.”
BitRiver grew to become the primary cryptocurrency mining firm to be sanctioned after Russia’s invasion of Ukraine in February of this yr.
OFAC additional asserts that the crypto mining agency assists Russia in “monetizing its natural resources.” The firm has described the motion as anti-competitive and unfair and has introduced its intention to press expenses in opposition to the United States authorities.
Gazpromneft’s enterprise technique doesn’t embody digital currencies, however the oil large is looking for alternate options that may allow the “beneficial use” of the associated fuel produced throughout oil extraction.
Crypto complete market cap at $789 billion on the weekend chart | Source: TradingView.com
Igor Runets, founder and CEO of BitRiver, acknowledged in a memorandum of settlement (MOA):
“Within the next two years, BitRiver plans to implement initiatives to build its own data centers for power-intensive computing with power scaling up to 2 gigawatts, including petroleum gas, which will also provide high and consistent power consumption.”
Although Gazpromneft and BitRiver’s relationship is novel, they weren’t the primary to undertake this idea.
In March of this yr, it was introduced that Exxon Mobil, the biggest U.S. oil firm, was testing bitcoin mining operations. Exxon apparently desired to scale back its surplus of burnt fuel.
Meanwhile, it stays to be seen if BitRiver’s flared pure fuel processes are worthwhile. JPMorgan analyst Nikolaos Panigirtzoglou initiatives that the associated fee of mining one Bitcoin (BTC) has elevated to $15,761, leading to decrease profitability for BTC miners because the cryptocurrency’s worth drops under $19,000 at press time.
Featured picture from Bloomberg.com, chart from TradingView.com