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Russian Bitcoin mining company
Now the plant in Rusal is unprofitable, the electricity supplied is practically unused, and the people in the industrial city near the plant have no jobs. Our idea is to redesign the plant and sell its computing power as a service, i.e. offer an IT service.
The former aluminium plant in the Karelia region once belonged to the Russian metal giant Rusal. However, Rusal shut down production in the summer of 2018 after losing access to the American market due to US sanctions. Some of the old halls have now been rented by the Russian Mining Company (RMC). Dmitry Marinichev, Russian entrepreneur and founder of RMC, explained (freely translated):Marinichev conducted an Initial Coin Offering (ICO) for RBC in 2017, which raised $43 million. This was significantly less than the $100 million the company intended to raise. However, it was still the most successful ICO in Russian history.
Furthermore RMC announced a partnership with the British Cryptonex exchange on 24 October. Through this partnership, Marinichev aims to expand RMC to 20 percent of Bitcoin mining worldwide. This would generate revenues of approximately USD 100 million per month. So far, it is still a long way for RMC from achieving a market share of 20 percent.
Yuri Pripachkin, President of the Russian Association for Cryptoeconomics and Blockchain (RACIB), believes that mining is still lucrative, but he cautions that electricity costs are the decisive factor (freely translated):Electricity prices in Moscow are quite high, and it is only for this reason that the placement of mining equipment elsewhere can prove more profitable.
At the same time, he doubts that RMC can get 20 percent of Bitcoin mining (freely translated):There are already many players in the world who use this cryptocurrency. For the Russian pool, it is realistic to concentrate on 5-7% of the total volume, and the indicator depends very much on access to the corresponding electricity prices.
Author : Jake Simmons