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Russia attempts to power Bitcoin mining operations through excess gas

Russia attempts to power Bitcoin mining operations through excess gas

With the Bitcoin crossing vital thresholds one after the another, it is evident that the energy resources employed to suffice the demand of the current network activity is paramount. The increase in Bitcoin’s user activity has fueled the Bitcoin mining operations. It currently stands at 77.28TWh per year. The global mining operations have significantly contributed to carbon emissions. The mining industry has broadened extensively, with mining operators receiving energy from sources such as electricity and natural oil.

According to the latest local publication, a Russian oil subsidiary of Gazpromneft is transferring excessive gas to the bitcoin mining companies to power operations. The oil drilling subsidiary, Gazprom, has vented out excessive gas extracted at oil fields to a small mining operations company to mine the foremost cryptocurrency. Vekus mining company leveraged Gazprom as the first local purchase to employ processed gas for electricity. Supposedly, it mined 1.5 BTC by utilizing the equipment for 49,500 cubic meters of associated gas. The deal was comparatively cost-effective for Vekus as it purchased the processed gas fee below RUB 3 per kWh than purchasing it directly from the grid. Additionally, the deal also covered all the equipment handling, maintenance and statistics.

Yuri Kudryashov, the CEO of Vekus, elucidated on the project,

The lion’s share of the cost of mining is electricity costs. For this reason, Vekus is constantly looking for reliable sources of cheap electricity. We gladly responded to the proposal of Gazpromneft to organize a pilot project at one of the fields.

Increase in Bitcoin Mining operations activity

With the current rage, the Russian giants are keen on inviting more Bitcoin mining companies to leverage the excessive natural gas resulting in greater profits. However, the regulatory framework is not quite favorable for small firms to obtain necessary permits to drive the mining operations.

The novice Bitcoin mining industry is undergoing a transformation phase as an industrial entity. The surge in mining operations and new entrants foraying in the Bitcoin space advocates the expansion of the prevalent industry. Earlier, the Greenidge Generation offered mining companies to leverage the excessive gas just like Gazpromneft.

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