Russia Is About To Release A Cryptocurrency Mining Farm Worth $12,3 Million

In the next months, the Russian Federation plans to construct a crypto-mining facility valued about $12.3 million. 

This large data processing facility will be placed in Buryatia, a Russian republic in eastern Siberia, according to local Russian media RBC. The data centre is anticipated to hold 30,000 mining equipment with a total power consumption of 100 megawatts when completed.

According to RBC, the government-affiliated JSC Corporation for Development of the Far East and the Arctic (KRDV) is in charge of the cryptocurrency mining operation. KRDV reports to both the Russian Ministry for the Development of the Far East and the Arctic and the President’s Plenipotentiary Representative in the Far Eastern Federal District of the Russian Federation.

According to a press release by KRDV, Bitriver-B, the operational arm of Russia’s largest mining company, Bitriver, has started development on the project, laying the foundation by establishing crucial infrastructure and supplying necessary power facilities. The cryptocurrency mining operation is expected to be completed in the first half of 2023, producing around 100 new positions.

KRDV was founded in 2012 with the mission of driving the economic and infrastructural development of the Russian Far Eastern Federal District by supporting investment projects in tourism, energy, healthcare, etc.

KRDV will extensively subsidies the operating expenses of the Buryatia-based mining farm via a variety of government assistance schemes. This subsidy will take several forms, such as land and property tax exemptions, decreased income tax rates, etc.

“The Bitriver-B corporation, which develops one of the most significant companies for the digital development of Buryatia, has been given a wide range of government assistance tools. Dmitri Khameruev, the head of the KRDV Buryatia, said that there would be no taxes on land and property, a reduction in insurance premiums to 7.6%, and a reduction in the income tax rate.

In addition, after its incorporation into the national power grid, the 100-megawatt mining station will pay just half of its current rate. This high degree of government assistance is based on Buryatia’s economic position as a “Priority Development Area”; thus, these incentives are designed to attract investments from local and international firms.

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