July 4, 2022

Russia’s third-largest oil producer inks settlement with inexperienced crypto mining internet hosting firm BitRiver to arrange mining amenities on oil fields.

As debates rage on in North America in regards to the alleged affect of bitcoin and Ethereum mining on the atmosphere, state-owned Russian vitality large Gazpromneft desires so as to add to Russia’s contribution to international hashrates.

The oil firm has tapped BitRiver, Russia’s largest mining co-location service supplier, to assemble inexperienced cryptocurrency mining information facilities on its oil fields powered by flared pure gasoline. BitRiver will construct the facilities at new oil fields missing transport accessibility or distant places. The brand new amenities will permit for the growth of as much as two gigawatts of energy capability within the subsequent two years.

“Over the subsequent two years, BitRiver intends to implement tasks to create its personal information facilities for power-intensive computing with energy scaling as much as 2 [gigawatts], together with [associated petroleum gas], which can moreover present excessive and steady energy consumption,” mentioned the Gazprom founder and CEO in a press release on Thursday.

The deal was inked on the St. Petersburg Worldwide Financial Discussion board on June 16, 2022. Gazpromneft is a subsidiary of Gazprom, with headquarters in St. Petersburg.

BitRiver’s Position within the Ukraine-Russia battle

Based in 2017, BitRiver operates a 100-megawatt renewable vitality mining information heart in Bratsk, Siberia.

BitRiver landed in sizzling water with the U.S. Treasury’s Workplace of International Property Management in April this 12 months, changing into the primary cryptocurrency mining firm to be sanctioned as a part of a regime to isolate Russia after it invaded Ukraine again in February.

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The division highlighted that BitRiver operated three workplaces in Russia, regardless of relocating possession of its digital belongings to Switzerland final 12 months. It additionally mentioned that the mining agency, by subcontracting capability to worldwide shoppers, helped the Kremlin monetize its belongings.

Crusoe Vitality Methods pioneers digital flare mitigation

Corporations like U.S. oil large ExxonMobil lately floated plans to mine bitcoin utilizing this cleaner vitality supply in North Dakota.

On the identical time, Oman’s sovereign wealth fund bought a stake in Denver-based Crusoe Vitality Methods Inc. to mine cryptocurrencies utilizing flared pure gasoline as a part of Crusoe’s proprietary “digital flare mitigation” initiative. Each North Africa and the Center-East account for 38% of flaring globally.

Oman’s authorities signed an settlement to finish common flaring by 2030 and has been an investor in Crusoe since early final 12 months earlier than shopping for a extra vital stake in April this 12 months.

It stays to be seen whether or not BitRiver’s flared pure gasoline operations proceed to be sustainable. A JPMorgan analyst Nikolaos Panigirtzoglou estimates that the price of mining one bitcoin has risen to $15,760, that means much less income for bitcoin miners because the bitcoin value dips beneath $20,000 on the time of writing.

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