US mining company Compass Mining to leave Russia

The reason is the sanctions imposed by the US Treasury Department against BitRiver, a mining company that also operates within the Russian Federation

25.04.2022 - 10:40

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2 min

What’s new? Compass Mining, a US mining company, will sell $30 million worth of equipment located in Siberia. This came after the US Treasury Department imposed sanctions on BitRiver, a mining company that also operates within Russia. This is reported by Bloomberg.

Bloomberg’s material

More details about the company’s departure. Compass is looking for buyers for equipment with 12 MW of capacity that cannot be moved out of Russia, CEO Whit Gibbs reported. He expects to distribute the proceeds to the 2000 customers who own it. According to Gibbs, Compass has another 10MW of equipment that was supposed to be delivered to Russia this year. However, it will now be diverted to North America, particularly Texas.

Prospects of the company. The company expects that its equipment operating capacity will grow to 355 MW by the end of the year, despite its departure from Russia. The assets currently have a total capacity of 70MW. Gibbs estimates that the state of Texas may add between 3500 and 5000 MW of capacity within two years, including new equipment at Compass sites.

What preceded it? On April 20, the US Treasury Department imposed sanctions against BitRiver. Its operations and assets, including its 10 subsidiaries, have been completely blocked in the United States, and residents of the country are prohibited from working with BitRiver.

What is known about Compass Mining? It is a mining company headquartered in Austin, Texas. Compass Mining operates data centers that house equipment owned by the company’s customers. The co-founders are Whit Gibbs, Paul Gosker, and Thomas Heller.

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