Russian Oil Field Crypto Farms Accounts For An 85 MW Capacity

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Last Updated on August 31, 2022 by Bitfinsider

According to researchers at Vygon Consulting, an independent consultancy focusing on the development of the Russian fuel and energy complex, data centers mining cryptocurrency in Russia’s oil fields have a total power rating of 85 megawatts, which is 23% of the market.

Small power plants that burn associated petroleum gas (APG), a waste product of the production of black gold that oil firms are required to dispose of, supply electricity to these crypto farms. They can sell it to miners for practically nothing.

Around 17 billion cubic meters of APG are used annually by Russian oil producers to power infrastructure at drilling sites. According to researchers, cryptocurrency mining currently consumes 279 million cubic meters of space, according to a report from the Russian business newspaper Kommersant, which cited the analysis done by Vygon Consulting.

APG miners made 400 million rubles ($6.6 million) in profits in July alone, based on an average monthly exchange rate of $20,000 for each bitcoin. At that price of bitcoin, their estimated yearly revenue for July 2022 to July 2023 is 4.8 billion rubles (about $79 million), and their estimated annual income for a six-year period may be 1.16 billion rubles ($19 million).

Sanctions may impede expansion, although APG Coin Minting is anticipated to increase

The analysts predict that the APG mining sector might expand by multiple times. The related gas that is currently flared at a rate of 1.6% might be used for mining, doubling the annual income of the engaged miners to 2.5 billion rubles. Additionally, if mining receives a third of all flaring APG, it might grow by 25 times in size and generate up to 30 billion rubles in revenue annually.

At the same time, sanctions imposed because of the crisis in Ukraine are making it difficult for Russia’s mining companies to operate. Russian users’ access to some foreign crypto exchanges is restricted, and the EU has placed restrictions on their ability to transact with their crypto wallets. According to Vygon Consulting, registering a mining entity in another nation is a potential solution.

That’s not necessarily a practical answer, as the instance of Bitriver demonstrates. In April, the U.S. Department of the Treasury imposed sanctions on the Swiss-registered business, which is a significant operator of mining data centers in the Russian Federation, over worries that Moscow would utilize the minting of virtual currency to monetize its energy resources.

A memorandum of collaboration between Bitriver and Gazprom Neft, the oil production arm of Russia’s energy behemoth Gazprom, was reportedly inked in June, allowing Bitriver to use electricity produced from associated gas at its wells. The specialists at Vygon Consulting maintain that such projects pose no risks to oil firms.

In 2019, Gazprom Neft started launching pilot projects to build data centers powered by APG, and as of right now, its businesses in three Russian regions are using computing infrastructure. The company made it clear that while it works with partners to run their installations, it does not deal in digital currency directly.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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