Bitcoin mining on associated petroleum gas account for 23% of the market in Russia

The average annual revenue of cryptocurrency mining companies using APG may exceed 1 billion RUB

29.08.2022 - 08:15

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What’s new? The capacity of Russian bitcoin mining farms running on associated petroleum gas (APG) has reached 85 MW, and the average annual revenue of the industry may exceed 1 billion Russian rubles (RUB). The total power capacity of mining farms in oil fields amounted to 23% of the entire cryptocurrency mining market in the country. This is reported by Kommersant, citing analytical data from Vygon Consulting, a consulting company specializing in the oil industry.

News on the Kommersant website

What other data has been released? Experts note that the new way of utilizing APG through bitcoin mining is the most profitable. Using associated gas for cryptocurrency mining allows oil companies to save money on building gas transportation infrastructure to deliver it to processing plants.

According to Vygon Consulting, in July the revenues of APG miners amounted to 400 million RUB at an average BTC price of $20 000, and the projected annual income by July 2023 at a similar asset rate could reach 4,8 billion RUB. With the average life of the farm (six years), the annual revenue of miners is estimated at 1,16 billion RUB.

As of August 29, 08:30 UTC, BTC is trading at $19 832, down by 1,23% per day, according to Binance.

In June, BitRiver, the largest CIS data center operator for mining, entered into a partnership with Gazprom Neft to mine cryptocurrencies using APG. Gazprom Neft will provide power to the data centers, which BitRiver will deploy. The deal was concluded during the St. Petersburg International Economic Forum (SPIEF).

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