Crypto miners in Russia take advantage of the bear market by hoarding ASIC devices

Cryptocurrency miners in Russia seem to be unbothered through the ongoing crisis of crypto mining because the local interest in mining hardware has apparently been in the boost in Q4 2022.

Some crypto mining hardware distributors in Russia have faced a substantial spike sought after for mining-designed application-specific integrated circuit (ASIC) chips, the neighborhood news agency Kommersant reported on 12 ,. 1.

Local dealer Chilkoot reported its ASIC sales in November and October exceeded its entire sales produced in Q3. In the last nine several weeks, the distributor apparently offered 65% more hardware compared to 2021.

“We will work with legal entities, so we observe that they started to purchase 30% more equipment in a single transaction than at the outset of the entire year,” Chilkoot development manager Artem Eremin stated.

BitRiver, Russia’s largest crypto mining-focused data center facility, has additionally recorded a notable rise in demand, apparently seeing 150% growth in the last 10 several weeks.

Russia’s reported boost in interest in cryptocurrency mining hardware comes among tough occasions for that mining industry, with total Bitcoin (BTC) mining revenue hitting two-year lows at the end of November. Numerous mining firms — including Argo Blockchain and Core Scientific — have asked whether or not they could continue operations because of massive losses driven through the current bear market in crypto.

Miners in Russia have likely been more and more hoarding crypto ASICs because of reduced prices of mining devices in addition to low-cost energy.

51ASIC co-founder Mikhail Brezhnev apparently stated that Bitcoin mining in Russia can nonetheless be lucrative despite an enormous stop by BTC cost this season. Based on the executive, the price of mining 1 BTC in the electricity price of $,07 per 1 kilowatt-hour most abundant in up-to-date equipment can generate roughly $11,000. During the time of writing, Bitcoin is buying and selling at $16,975, lower about 70% in the last year, according to data from CoinGecko.

Related: Russian bill would legalize crypto mining, sales under ‘experimental legal regime’

The commercial crypto mining market in Russia continues to be taking advantage of the present market situation, BitRiver’s financial analyst Vladislav Antonov apparently stated. He noted the interest in ASIC equipment within the wholesale segment elevated as a result of stop by purchase prices, that have become as near as you possibly can to the price of production. That’s the best access point for investment, the expert apparently stated.

Based on Antonov, a mining entry throughout a bear market could possibly generate “significant profit of many percent” more than a three-year period.

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