Monday, February 26, 2024

US Compass Mining Plans To Sell $30M Worth Of Equipment In Russia

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US Compass Mining, a well-known mining company plans to sell $30 million worth of equipment in Russia in a bid to avoid sanctions that are imposed by the US as we can see more today in our latest cryptocurrency news.

With the West leading the fight with sanctions, the US Compass Mining plans to sell around $30 million in BTC mining located in Siberia. The move to liquidate the BTC mining rigs came after the US government imposed fresh sanctions on the mining operation BitRiver and ten other such subsidiaries. According to the reprots, Compass Mining is looking for buyers in Russia for mining servers with 12 megawatts of capacity and the CEO Whit Gibbs thinks the company will be able to pay off the proceeds to about 2000 clients that own the gear and recover the value of the equipment.

The Russian servers that compass will get rid off represent about 15% of the current capacity and Gibbs expected the company’s capacity can potentially expand to 355 MW by the end of the year from 70 MW after clearing out the equipment in Siberia. It also has another round of servers that will be shipped to Russia in the upcoming months but hte executive maintained that these will be rerouted to facilities in North America and Texas.

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The Texas-based company noted some strogn activity after the Chinese BTC mining exodus with most miners flocking to Russi due to the country’s rising rates. For context, the cost of electricity in the Russian Federation, Norsilk, and Siberia region can be as low as $0.03 per Kwh and things have changed after the invasion of Ukraine and the mining ecosystem is under heavy scrutiny from Western regulators.

The newly imposed sanctions are some of the biggest blows to the mining industry as the miners continue to scramble looking for friendlier hubs and the cost-efficient energy while Compass Mining fears a similar fate to the same of Bitriver. The company’s decision came at a time after the United States Treasury Department sanctioned the Swiss data-centers service provider and the OFAC asserted that Russia had a comparative advantage in crypto mining due to the country’s energy resources and a cold climate. Igor Runets the founder of BitRiver claimed that the company has not provided services to Russian government institutions and hasn’t worked with customers already targeted by sanctions.

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