• Login
Crypto Newsmart
No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE
No Result
View All Result
Crypto Newsmart
No Result
View All Result

Crypto Farms Mining at Russian Oil Fields Reach 85 MW of Cap…

in Crypto Updates
Reading Time: 5 mins read
Crypto Farms Mining at Russian Oil Fields Reach 85 MW of Cap…
20
VIEWS
Share on Facebook

Farms mining cryptocurrency at oil wells in Russia account for 85 megawatts (MW) of energy capacity, experts have estimated. Investors are considering projects for another 200 MW despite constraints stemming from Western sanctions, a report reveals.

Contents

  • 1 Annual Income From Crypto Mining With Associated Gas in Russia to Exceed One Billion Rubles
  • 2 APG Coin Minting Expected to Grow Although Sanctions May Impede Expansion
          • 2.0.0.0.1 Tags in this story
          • 2.0.0.0.2 Lubomir Tassev
      • 2.0.1 More Popular News
      • 2.0.2 In Case You Missed It
      • 2.0.3   Here we will Share others post you might like

Annual Income From Crypto Mining With Associated Gas in Russia to Exceed One Billion Rubles

Data centers mining cryptocurrencies in Russia’s oil fields have a combined power rating of 85 megawatts, which is 23% of the market, according to analysts at Vygon Consulting, an independent consultancy working on the development of the Russian fuel and energy complex.

These crypto farms are supplied with electricity generated by small power plants burning associated petroleum gas (APG), a by-product of the extraction of black gold, that oil companies are required to dispose of. While it costs them almost nothing, they can sell it to miners.

Russian oil producers use around 17 billion cubic meters of APG annually to power facilities at drilling sites. Researchers say cryptocurrency mining accounts for 279 million cubic meters of consumption at the moment, the Russian business daily Kommersant reported, quoting the study conducted by Vygon Consulting.

In July alone, the earnings of APG miners amounted to 400 million rubles (approx. $6.6 million), calculated at a monthly average exchange rate of $20,000 per 1 BTC. Their projected annual revenue for July 2022 – July 2023 at that bitcoin price is 4.8 billion rubles (close to $79 million) and the annual income for a six-year period could reach 1.16 billion rubles ($19 million).

APG Coin Minting Expected to Grow Although Sanctions May Impede Expansion

According to the analysts, the APG mining industry could potentially see multifold growth. If 1.6% of the associated gas, which is currently flared, was used for mining, then the annual income of the miners involved would double to 2.5 billion rubles. And if a third of all flared APG is dedicated to mining, the sector could increase in size by 25 times and expect revenue of up to 30 billion rubles a year.

At the same time, Russia’s mining businesses are facing challenges due to sanctions imposed over the conflict in Ukraine. The EU has limited transactions with crypto wallets of Russian users and some international crypto exchanges restrict Russians’ access to their platforms. Vygon Consulting says that a possible way out is to register a mining entity in another country.

That’s not always a workable solution as the case with Bitriver shows. The Swiss-registered company, which is a major operator of mining data centers in the Russian Federation, was sanctioned by the U.S. Department of the Treasury in April, amid concerns that Moscow may use the minting of digital coins to monetize its energy resources.

In June, Russian crypto media reported that Bitriver has signed a memorandum of cooperation with Gazprom Neft, the oil production arm of Russia’s energy giant Gazprom, to utilize electricity generated from associated gas at its wells. Vygon Consulting’s experts insist such projects carry no risks for oil companies.

Gazprom Neft began launching pilot projects to establish data centers powered with APG in 2019 and now has computing infrastructure operating at its enterprises in three Russian regions. The company emphasized it does not engage with digital currencies directly but provides excess energy to the installations run by partners that it works with.

Importing computing equipment required for crypto mining is another problem for Russian companies facing international restrictions, the report notes. The path “has become longer legally and logistically,” says Roman Zabuga, co-owner of BWC UG, another leading mining operator who puts the current installed capacity of APG farms at 30 – 40 MW. Nevertheless, he believes that investors plan to realize large-scale new projects with a combined capacity of 200 MW in the future.

Tags in this story
APG, associated gas, Bitcoin, Bitriver, Crypto, crypto miners, crypto mining, Cryptocurrencies, Cryptocurrency, Gazprom Neft, Miners, mining, OIL, oil companies, oil fields, oil production, oil wells, Russia, russian

Do you think crypto mining on associated gas will continue to grow in Russia? Share your thoughts on the subject in the comments section below.

5D400B11 D5DE 4922 B4F4 0F7229C37672
Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

 

 

Image Credits: Shutterstock, Pixabay, Wiki Commons, Solodov Aleksei

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

More Popular News

In Case You Missed It

Source link


Sign up now: Get Smarter about Cryptocurrency with our weekly Free newsletter

Do you have any question?  Reach out to us in any other social media, we will do our best to respond After you are Following Us  🙂

Instagram ——Twitter——-Facebook——Quora

Do you like the Article?  Please share   Thank you…

**this post contains affiliate links that will help me create new content without additional cost for you **

**I’m not a financial advisor **

  Here we will Share others post you might like

 

Crypto Bots Review (3Commas)

Is crypto the future?


  • Trending
  • Comments
  • Latest
Expert Bitcoin Price Predictions: From K to K in 2023, and Beyond

Expert Bitcoin Price Predictions: From $20K to $38K in 2023

1 February 2023
How Investigators Trace Crypto Criminals?

How Investigators Trace Crypto Criminals?

30 January 2023
How to trade cryptocurrency on Coinbase

How to trade cryptocurrency on Coinbase

31 January 2023
MoneyGram Partners With Circle To Enable USDC Cross-Border Stablecoin Transactions on Stellar (XLM) Blockchain

MoneyGram Partners With Circle To Enable USDC Cross-Border Stablecoin Transactions on Stellar (XLM) Blockchain

2 February 2023
How to trade cryptocurrency on Binance

How to trade cryptocurrency on Binance

27 January 2023
Sberbank Cover 1024x538 1

Russia’s Largest Bank to Launch Ethereum-Compatible DeFi Platform

5 February 2023
upload 7d22bc5d7be9c0d5d8f50161734559ae

KZG Ceremony Grant Round | Ethereum Foundation Blog

5 February 2023
Article Post Images 23

Bitcoin (BTC) Price to Surge 8x If This Scenario Plays Out – Here’s How and When

5 February 2023
crypto hacking

Hackers Stole $3.8 Billion From Crypto Firms in 2022, Says Chainalysis – Featured Bitcoin News

4 February 2023
ripple sec lawsuit

Ripple Vs SEC Update: Latest Hearing Offers Hope, XRP Gains Upper Hand

3 February 2023

  • Home
  • Disclaimer
  • Privacy Policy
  • Digital Millennium Copyright Act Policy (DMCA)
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us
CRYPTO NEWSMART

Copyright © 2021 Crypto Newsmart.

No Result
View All Result
  • HOME
  • BITCOIN
  • CRYPTO UPDATES
    • ALTCOIN
    • ETEREUM
    • NFT’s
    • CRYPTO PRICE ANALYSIS
  • LEARN CRYPTO
  • CRYPTO EXCHANGES
  • BLOCKCHAIN
  • MINING
  • SCAM ALERT
  • PRESS RELEASE

Copyright © 2021 Crypto Newsmart.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
  • bitcoinBitcoin(BTC)€21,108.59-2.61%
    BITCOIN
    24H : -2.61%
    Volume : €26,161,177,482.63
    Marketcap : €407,095,698,946.62
  • ethereumEthereum(ETH)€1,504.09-2.68%
    ETHEREUM
    24H : -2.68%
    Volume : €7,691,516,942.23
    Marketcap : €181,098,923,905.58
  • usdex-stablecoinUSDEX(USDEX)€0.995-0.96%
    USDEX
    24H : -0.96%
    Volume : €118,440.27
    Marketcap : €102,881,883,688.82
  • tetherTether(USDT)€0.9280.020%
    TETHER
    24H : 0.020%
    Volume : €35,153,190,218.99
    Marketcap : €63,122,289,360.35
  • binancecoinBNB(BNB)€299.74-2.70%
    BNB
    24H : -2.70%
    Volume : €897,344,329.14
    Marketcap : €40,365,466,596.02
  • usd-coinUSD Coin(USDC)€0.9280.040%
    USD COIN
    24H : 0.040%
    Volume : €2,537,701,271.60
    Marketcap : €38,903,882,804.71
  • rippleXRP(XRP)€0.370-2.66%
    XRP
    24H : -2.66%
    Volume : €922,751,006.33
    Marketcap : €18,799,875,053.98
  • binance-usdBinance USD(BUSD)€0.9280.090%
    BINANCE USD
    24H : 0.090%
    Volume : €8,695,957,994.01
    Marketcap : €15,090,779,316.89
  • cardanoCardano(ADA)€0.362-2.15%
    CARDANO
    24H : -2.15%
    Volume : €352,772,520.48
    Marketcap : €12,699,885,816.38
  • dogecoinDogecoin(DOGE)€0.085-3.80%
    DOGECOIN
    24H : -3.80%
    Volume : €863,934,729.70
    Marketcap : €11,729,439,118.15
  • okbOKB(OKB)€41.211.30%
    OKB
    24H : 1.30%
    Volume : €25,120,924.04
    Marketcap : €10,180,946,642.95
  • matic-networkPolygon(MATIC)€1.09-4.86%
    POLYGON
    24H : -4.86%
    Volume : €575,112,360.77
    Marketcap : €9,884,690,409.35
  • solanaSolana(SOL)€21.41-5.37%
    SOLANA
    24H : -5.37%
    Volume : €636,365,740.26
    Marketcap : €7,980,762,172.79
  • shiba-inuShiba Inu(SHIB)€0.000013-4.25%
    SHIBA INU
    24H : -4.25%
    Volume : €967,750,753.23
    Marketcap : €7,861,833,992.92
  • staked-etherLido Staked Ether(STETH)€1,500.29-2.66%
    LIDO STAKED ETHER
    24H : -2.66%
    Volume : €12,961,729.21
    Marketcap : €7,577,162,909.18
  • polkadotPolkadot(DOT)€6.15-3.32%
    POLKADOT
    24H : -3.32%
    Volume : €241,670,295.99
    Marketcap : €7,376,775,535.77
  • litecoinLitecoin(LTC)€88.78-2.81%
    LITECOIN
    24H : -2.81%
    Volume : €478,523,134.50
    Marketcap : €6,405,066,856.15
  • avalanche-2Avalanche(AVAX)€18.34-5.98%
    AVALANCHE
    24H : -5.98%
    Volume : €322,483,864.88
    Marketcap : €5,782,199,878.18
  • tronTRON(TRX)€0.059-2.00%
    TRON
    24H : -2.00%
    Volume : €475,491,504.87
    Marketcap : €5,374,749,295.55
  • uniswapUniswap(UNI)€6.29-6.50%
    UNISWAP
    24H : -6.50%
    Volume : €141,685,824.56
    Marketcap : €4,739,006,071.39
Manage Cookie Consent

We use cookies to optimise our website and our service.

Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
Manage options Manage services Manage vendors Read more about these purposes
Preferences
{title} {title} {title}