Russian Oligarch Turns Soviet Plant Into a Major Bitcoin Mining Hub

The largest data center in the former Soviet Union, BitRiver, opened about a year ago in the Siberian city of Bratsk and most of its clients use the facility to mine Bitcoin, Bloomberg reported on Nov. 24.

The data center allows cryptocurrency miners to take advantage of cheap energy in what once used to be the world's largest aluminum smelter.

The data center's location also benefits from a cold climate, allowing mining hardware to work at higher efficiency rates while cutting cooling costs.

According to Bloomberg, Russian law does not recognize cryptocurrency mining.

Because of this legal gray area, Bitriver does not directly engage in mining, but only provides equipment and technical services to its clients - including from Japan, China and the United States - operating like any other data center.

The plant is the largest hydropower plant in Russia and the data center allows it to constantly sell excess energy and diversify its client base.

BitRiver is paying for the power 2.4 rubles per kilowatt-hour, equivalent to about $0.038 without value-added tax and sells it at 3.5 rubles per kWh to miners.

Still, miners are seemingly keen to continue boosting their capacity.

"There is NO miner capitulation," commented Bitcoin entrepreneur Alistair Milne on Sunday following a rise in network hash rate and expected difficulty hike.

As Cointelegraph reported earlier this week, German Bitcoin mining firm Northern Bitcoin has entered a merger agreement with United States-based competitor Whinstone to jointly build what will supposedly be the world's largest mining farm.