A Russian Operation Is Mining Bitcoin in the Arctic Circle for Cheap Electricity

A Russian company is leveraging the Siberian city of Norilsk located above the Arctic Circle in order to mine bitcoins. Bitcluster, the owner of the crypto mining operation, plans to expand the firm’s activities after launching the facility in late 2020. According to the company’s website, the datacenter is getting electricity rates as low as $0.03 per kilowatt-hour (kWh).

Mining Precious Crypto Assets in the Arctic Circle

This week the Russian mining operation Bitcluster was featured in a Bloomberg video-report that highlights the company’s Norilsk bitcoin mine. The city of Norilsk is considered one of the world’s most northerly settlements and it is known for hosting the metal mining company MMC Norilsk Nickel PJSC. MMC Norilsk Nickel is the world’s largest palladium producer and it also produces colossal amounts of nickel, copper, and platinum.

Now Bitcluster is bringing the polar region a new type of precious-asset mining by setting up shop mining cryptocurrency in Norilsk.

A Russian Operation Is Mining Bitcoin in the
The Siberian city of Norilsk is home to a permanent population of 175,000 and during nickel and palladium mining season the Arctic Circle area can have around 220,000 people.

Bitcluster’s cofounder Vitaly Borschenko detailed in an interview that the Norilsk bitcoin mine is being contracted by international interests located all around the world. Despite the fact that the arctic region of Norilsk is extremely cold, the temperatures benefit the bitcoin mining operations according to Bitcluster as it helps the cooling aspect of the process.

Bitcluster’s webpage details that the company uses a special canopy in order to protect the facility from the cold corridor. “The warm air from the miners is mixed to prevent the snow from falling,” Bitcluster notes.

A Russian Operation Is Mining Bitcoin in the
Bitcluster says that it is housing mining rigs in various containers in the region often covered in permafrost.

Polar Region Power Is 25% Cheaper Than Russia’s Grid, Norilsk Creates Its Own…

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