Demand for ASIC miners in Russia has grown by 65% compared to 2021

What’s new? In the fourth quarter, demand for ASIC miners has grown in Russia. The reasons were the decline in the digital asset market and the low cost of electricity. Chilkoot, a distributor of cryptocurrency mining equipment manufacturers, reported that sales in October and November exceeded volumes for the entire third quarter. In addition, sales for nine months exceeded the figures for 2021 by 65%. BitRiver, an operator of mining centers, also confirmed the growth of demand by one and a half times in ten months of this year. At the same time, demand for graphics cards, on the contrary, has fallen, Kommersant reports.

Kommersant’s material

Kommersant analysts’ opinion. Artem Eremin, Chilkoot by 3Logic Group distributor development manager, said that legal entities began to buy 30% more equipment in a single trade than at the beginning of the year. He noted that the cost of graphics cards continues to fall. This was confirmed by Berezka DAO and Weezi co-founder Roman Kaufman explaining that now graphics processors are needed primarily by gamers, not miners. According to him, ASICs are currently “gaining tremendous popularity.”

BitRiver financial analyst Vladislav Antonov believes that the Russian industrial mining market benefits from the current situation. According to the expert, demand for ASIC miners among wholesalers has increased due to the decrease in the purchase prices, which have become as close to the cost of production as possible, which is the best entry point for investment. Thus, from August to October the cost of mining units fell by almost 20%. In this, since October, prices “got fixed and do not fall lower,” they said at Chilkoot.

Anna Avakimyan, the chief analyst at RegBlock, said that the total market volume of digital asset mining equipment is 3-5 billion Russian rubles (RUB), not counting the dual use of industrial computing power.

In his turn, TerraCrypto founder Nikita Vassev said that demand in Russia is supported by favorable conditions for placing the mining capacities because the cost of electricity is much lower than in many other regions of the world.

51ASIC co-founder Mikhail Brezhnev said that with the most modern equipment at a price of $0,07 per 1 kWh the cost of mining 1 BTC is about $11 000. It means that there is still some margin of safety for Russian miners. In turn, Vladislav Antonov believes that entering the low market in bitcoin mining “can give a significant profit in the form of tens of percent on the horizon of three years.”

Earlier, analysts interviewed by Kommersant said that bitcoin could surpass the $100 000 mark, but not before 2024-2025. In anticipation of halving bitcoin miners will begin to accumulate mined coins, the market will form a deficit and prices will go up, experts believe.

As of December 1, 09:00 UTC, BTC is trading at $17 113, having gained 1,33% per day, according to Binance.

In late October, Citilink began the first official sales of equipment for cryptocurrency mining in the Russian Federation. Ivan Sharov, director of the online store for mining equipment and computer components Hardvar, noted that prices at Citilink are twice as high as at specialized stores.