Gazpromneft is the third-largest oil entity based in Russia, which joined forces with BitRiver to encourage Bitcoin mining locally with the energy extracted from its activities.
Russia-based state-owned gas entity Gazpromneft revealed an alliance with mining company BitRiver whereby they will harness electrical energy from oil activities to obtain crypto funds focused on Bitcoin.
This information got highlighted by the BitRiver team in a statement in which they explained that the entity desires to bring the infrastructure for the data centers but Gazpromneft would give the necessary energy to make the operations easier. The goal is to create crypto mining headquarters near new oil fields in Russian regions.
This alliance between BitRiver and Gazpromneft would bring crypto mining plants an extreme flow of electrical energy, generating at least 2 gigawatts or more to fully guarantee the mining of digital assets focused on Proof-of-Work (PoW).
Digital Assets and Mining Activities in Russia
The alliance arrived amid an obscure moment for Russia since an armed attack against Ukrainian territory is currently taking effect. The country is exploring financing procedures that may circumvent the international sanctions that most of the world imposed.
The announcement also arrived during harsh times for digital assets within the Soviet country since the administration pressed for them to get regulated while the Central Bank still stands firm about banning their commercial distribution.
According to the international level, the problem arrived because digital assets could work as a tool to avoid financial punishments against the region. However, various reports explained that the transparency and traceability of the activities, including the little liquidity that the market has regarding other sectors, would not allow the country to build an archetype to deal with its current situation.
Profitability of Cryptocurrency Mining Activities
Another detail pointed out by experts and analysts has to do with the profitability of PoW-based crypto mining, especially at this time when most projects implement different procedures to use models that show more balance when it comes to environmental concerns.
For now, the most prominent exponent that works under PoW is Bitcoin, a currency that, after the market, Crashdown, would experience a very dark scenario for those who mine digital assets. Analysts assure that with a BTC around USD 20,000, it would not be profitable to pay for mining today, especially for those who carry out these operations on a low and medium scale.
By: Jenson Nuñez
