The Russia-Ukraine war has resulted at the beginning of another war. It’s an economic struggle between the US and Russia, where the west is leading the fight with sanctions. The recent ones that were introduced targeted nearly 40 companies, including the 3rd largest mining company Bitriver. Therefore, the US mining company, Compass plans to sell mining equipment in Russia for $30M. This will ensure they aren’t sanctioned by the US. It will also reduce their energy consumption by 12 megawatts.
Compass plans to sell mining equipment in Russia
The company’s CEO, Whit Gibbs, said that the funds they raise by selling the equipment would be used to pay off nearly 2000 customers. The equipment they are going to sell was actually owned by customers. They also offered to host services in the region. It was going all well because the electricity cost is very cheap in Russia, and it became one of the main mining hotspots for Bitcoiners. The prices were as low as $0.03 Kwh, but after the war began, companies needed to move out due to the US Sanctions.
Now, this is a big problem for mining companies as Russia was a great place for their operation. On the other hand, the US is much more expensive and has more regulatory issues. Recently, the US lawmakers asked the Environmental Protection Agency of the country to increase vigilance over miners. They are also going to review permits and see if companies meet the requirements to keep operating. So, even though the US has a lot of mining facilities, it is not the most optimum place technically.
About Compass
Compass Mining is a mining and hosting platform that enables its customers to benefit from Bitcoin mining. By assisting more individuals in studying, exploring, and mining bitcoin, the firm hopes to encourage the decentralized rise of hash rate and enhance network security. For this, they have launched a service called At-Home mining. It is a direct-to-consumer service that allows you to buy bitcoin mining equipment for your home. This revolutionary service allows clients to mine bitcoin from the comfort of their own home without having to pay additional hosting facility costs by having ASIC mining equipment delivered directly to your door.
What are your thoughts as Compass plans to sell mining equipment in Russia for $30M? And how badly do you think the US sanctions are affecting the mining industry? Let us know in the comments below. Also, if you found our content informative, do like and share it with your friends.
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