Norilsk became the new home for bitcoin miners

Norilsk became the first city in the Krasnoyarsk Territory with mining farms for mining bitcoin on a large scale

Norilsk has become a new hub for Bitcoin cryptocurrency miners. Since the beginning of last year, the city in the Krasnoyarsk Territory has increased its capacity in the cryptocurrency market, writes Bloomberg.

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BitCluster has already deployed its Bitcoin mining infrastructure and intends to expand its services overseas, including Switzerland, the United States and Japan, said BitCluster co-founder Vitaly Borshchenko. The temperature in Norilsk, reaching -40 °, makes this city one of the most profitable in terms of industrial cryptocurrency mining.

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Now BitCluster has opened a new data center on the site of the former nickel plant of the Stalin era, closed by Norilsk Nickel in 2016. Borshchenko admits that Norilsk Nickel’s presence in the area is a great business attraction, as such a large enterprise provides the mining company with cheap electricity.

“The place is ideal for mining cryptocurrencies: it is cold here and there is electricity in this area that is not connected to any of the Russian power grids,” Borshchenko said.

According to Borshchenko, BitCluster will become the second largest consumer of electricity in Norilsk after Norilsk Nickel itself. At the same time, BitCluster customers pay only 2.75 rubles ($ 0.04) per kilowatt hour, which is one of the cheapest rates in the world. Norilsk Nickel mainly uses gas or hydropower to generate electricity.

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BitCluster is expected to be able to double its capacity to 31 MW this year. At full capacity, he could mine an average of six bitcoins a day.

The head of the Binance cryptocurrency exchange Changpeng Zhao previously announced a potential entry into the domestic mining market. Despite the fact that when asked whether Binance plans to open its own mining pool in the Far East, Zhao did not directly answer, he said that Binance is interested in cooperation with mining organizations in Russia and the CIS.

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Karice Dabule

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