Russia, a country that recently revealed its plans to legalize Initial Coin Offerings (ICOs), has been showing a lot of interest in the cryptocurrency industry. So much so that even Burger King Russia has revealed the launch of its own cryptocurrency, the WhopperCoin, a token issued on Waves Platform.
Russian newspaper, Vedomosti daily recently reported that companies operating power plants in Russia are looking to lease generators with excess capacity to Bitcoin miners at a discount, an offer that helps both cryptocurrency miners and the power companies themselves.
Russia’s biggest energy company, EuroSibEnergo, reportedly received dozens of requests from cryptocurrency miners looking to take advantage of the opportunity to be ahead of the competition. A company spokesperson, quoted by the Vedomosti daily, stated:
“There are over 70 manufacturing facilities with ready-made infrastructure, including quick access to electrical grids and substations, provided with cheap electric power.”
So far EuroSibEnergo, which operates dozens of power plants and produces 9 percent of the country’s electricity, is said not to have signed any contracts, despite currently being in negotiations with dozens of miners.
In Russia, it is estimated that about 30 percent of Bitcoin mining expenses go to paying energy bills, as the intensive process consumes a lot of resources. For Ethereum miners, the figure goes down to 15 percent, according to Timofey Ra, a mining farm owner.
According to Timofey, cryptocurrency miners are planning on purchasing the excess energy for about two rubles ($0.03) per kilowatt, instead of the standard 4.5 rubles ($0.07). This means the farmers can see their power costs go down by 55%, effectively increasing their profits.
Russia going big on cryptocurrencies
The announcement comes days after news broke of Putin’s internet ombudsman, Dmitry Marinichev, looking to compete with China’s Bitcoin mining supremacy by raising $100 million through an ICO.
According to Bloomberg, his company, Russian Miner Coin (RMC), wants to invest the ICO’s proceeds in a cryptocurrency mining infrastructure, while offering RMC token holders the rights to 18% of the company’s revenue generated by the mining equipment. Marinichev notably stated that Russia has the potential to be a dominant faction in the cryptocurrency mining industry, stating:
“Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”
Russia isn’t the only country getting in on the ICO craze. As previously reported by Core Media, Estonia may soon issue its own national cryptocurrency, dubbed Estcoin, through an ICO.