Crypto miners in Russia capitalize on the bear market by hoarding ASIC devices

Cryptocurrency miners successful Russia look to beryllium unbothered by the ongoing situation of crypto mining arsenic the section request for mining hardware has reportedly been connected the surge successful Q4 2022.

Some crypto mining hardware distributors successful Russia person faced a important spike successful request for mining-designed application-specific integrated circuit (ASIC) chips, the section quality bureau Kommersant reported connected Dec. 1.

Local trader Chilkoot reported its ASIC income successful November and October exceeded its full income made successful Q3. Over the past 9 months, the distributor reportedly sold 65% much hardware than successful 2021.

“We are moving with ineligible entities, and we spot that they began to bargain 30% much instrumentality successful 1 transaction than astatine the opening of the year,” Chilkoot improvement manager Artem Eremin said.

BitRiver, Russia’s largest crypto mining-focused information halfway facility, has besides recorded a notable summation successful demand, reportedly seeing 150% maturation implicit the past 10 months.

Russia’s reported a surge successful request for cryptocurrency mining hardware comes amid pugnacious times for the mining industry, with full Bitcoin (BTC) mining gross hitting two-year lows successful precocious November. A fig of mining firms — including Argo Blockchain and Core Scientific — person adjacent questioned whether they would beryllium capable to proceed operations owed to monolithic losses driven by the existent carnivore marketplace successful crypto.

Miners successful Russia person apt been progressively hoarding crypto ASICs owed to reduced prices of mining devices arsenic good arsenic low-cost energy.

51ASIC co-founder Mikhail Brezhnev reportedly said that Bitcoin mining successful Russia tin inactive beryllium profitable contempt a monolithic driblet successful BTC terms this year. According to the executive, the outgo of mining 1 BTC astatine the energy outgo of $0,07 per 1 kilowatt-hour with the astir up-to-date instrumentality tin make astir $11,000. At the clip of writing, Bitcoin is trading astatine $16,975, down astir 70% implicit the past year, according to information from CoinGecko.

Related: Russian measure would legalize crypto mining, income nether ‘experimental ineligible regime’

The concern crypto mining marketplace successful Russia has been benefiting from the existent marketplace situation, BitRiver’s fiscal expert Vladislav Antonov reportedly said. He noted that the request for ASIC instrumentality successful the wholesale conception accrued owed to a driblet successful acquisition prices, which person go arsenic adjacent arsenic imaginable to the outgo of production. That is the champion introduction constituent for investment, the adept reportedly said.

According to Antonov, a mining introduction during a carnivore marketplace tin perchance make “significant nett of tens of percent” implicit a three-year period.