CryptoPotato
CryptoPotato
  • Crypto News
  • Margin Trading
  • Guides
    • Bitcoin & Crypto Guides 101
    • Bitcoin For Beginners
    • Editorials
  • DeFi & NFT
  • Buy
  • Language
  • Crypto News
  • Bitcoin For Beginners
  • Cryptocurrency Guides 101
  • Editorials
  • Bitcoin & Crypto Margin Trading
  • DeFi & NFT News
  • Bitcoin Price Analysis
  • CryptoPotato Crypto Fund
  • Ethereum (ETH) Price Analysis
  • Ripple (XRP) Price Analysis
  • Market Updates
  • Interviews
  • Buy Bitcoin with Card
  • bitcoin
    BTC$22,886.00
  • ethereum
    ETH$1,621.80
    • Market Updates
    • BTC Analysis
    • ETH Analysis
    • XRP Analysis
    • Interviews
    • Opinions
    CryptoPotato
    CryptoPotato
    • Crypto News
    • Margin Trading
    • Guides
      • Bitcoin & Crypto Guides 101
      • Bitcoin For Beginners
      • Editorials
    • DeFi & NFT
    • Buy
    • Language
    • Crypto News
    • Bitcoin For Beginners
    • Cryptocurrency Guides 101
    • Editorials
    • Bitcoin & Crypto Margin Trading
    • DeFi & NFT News
    • Bitcoin Price Analysis
    • CryptoPotato Crypto Fund
    • Ethereum (ETH) Price Analysis
    • Ripple (XRP) Price Analysis
    • Market Updates
    • Interviews
    • Buy Bitcoin with Card
    Home » Crypto News » US Crypto Mining Company Plans to Sell $30M Worth Equipment in Russia to Dodge Sanctions

    US Crypto Mining Company Plans to Sell $30M Worth Equipment in Russia to Dodge Sanctions

    Author: Chayanika Deka

    Last Updated Apr 25, 2022 @ 11:10

    Compass Mining is selling around $30 million in Bitcoin mining equipment located in Siberia in a bid to avoid sanctions imposed by the US.

    With the West leading the fight with sanctions, a US-based company – Compass Mining – is planning to sell around $30 million in Bitcoin mining equipment located in Siberia.

    The move to liquidate the Bitcoin mining rigs comes after the United States government imposed fresh sanctions on the mining operation BitRiver and ten subsidiaries.

    Averting US Sanctions

    According to the latest Bloomberg report, Compass Mining is looking for buyers in Russia for mining servers with 12 megawatts of capacity. Its Chief Executive Officer Whit Gibbs believes the firm will be able to pay off proceeds to nearly 2,000 clients that own the gear after recovering the value of the equipment.

    The Russian servers that Compass is willing to get rid off represent about 15% of its current capacity. Gibbs expects that the company’s operating capacity could potentially expand to 355 MW by the end of the year, from about 70 MW, after clearing out equipment in Siberia.

    It also has another round of 10 MW servers that it expects to be shipped to Russia in the coming months. However, the exec maintained that these will be “rerouted to facilities in North America, notably Texas.”

    ADVERTISEMENT

    The Texas-based company noted significant activity after the Chinese Bitcoin mining exodus, with many miners flocking to Russia especially due to the country’s electricity rates. For context, the cost of electricity in the Russian Federation, Siberia, and the Norilsk region can be as low as $0.03 per kWh. Things changed after the invasion of Ukraine, and the crypto mining ecosystem is under heavy scrutiny from Western regulators.

    All Eyes on Russia’s Crypto Mining Ecosystem

    The freshly imposed sanctions are some of the biggest blows to the mining industry as miners continue to scramble in search of friendlier hubs and cost-efficient energy. Compass Mining fears a similar fate to that of the mining company – BitRiver.

    The firm’s decision comes at a time after the United States Treasury Department sanctioned the Swiss data-center services provider. As reported by CryptoPotato earlier, the OFAC asserted that Russia had a “comparative advantage in crypto mining,” citing the country’s energy resources and a cold climate.

    Igor Runets, the founder and chief executive of BitRiver, however, claimed that the company has “never provided services to Russian government institutions and has not worked with customers already targeted by sanctions.”

    SPECIAL OFFER (Sponsored)
    Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

    PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.

    You Might Also Like:

    • Russia
      Russia Might Accept Bitcoin for Oil Payments (Report)
    • Another Solo Miner Nets $215K in BTC Using a Mini USB Rig
    • Russia
      Russia Prepares its Final Crypto Regulation Bill (Report)
    Tags: Bitcoin Mining Russia
    Enjoy reading? Share with your friends
    Facebook Twitter LinkedIn Telegram

    About The Author

    Chayanika Deka
    More posts by this author

    Chayanika has been working as a financial journalist for three years. A graduate in Political Science and Journalism, her interest lies in regulatory implications with a focus on technological evolution in the crypto realm. Contact:Linkedin

  • bitcoin
    BTC$22,886.00
  • ethereum
    ETH$1,621.80
  • Join Our Community

    FacebookTwitter YouTubeTelegram


    Editorials
    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    2022 Was Crypto’s Dot Com Bust: Let’s Recap Tech Stocks After 2000 (Opinion)

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    How Long Will the Ethereum LSD Narrative Last? Talking 2023 Trends with Nansen’s Martin Lee

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    Everything That’s Going on With Pi Network: From Start to Latest Controversial Listing

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    What is Ethereum Liquid Staking and Why It Is Crucial As Shanghai Upgrade Approaches?

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    The Lesson in Alameda-FTX About Government Regulation and Crypto (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    5 Bullish and 2 Bearish Cases for DeFi Going Into 2023 (Opinion)

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    From Google and Microsoft to Binance: Interview with Head of Product Mayur Kamat

    Join Our Newsletter
    Become a CryptoPotato VIP
    One Weekly Email Can Change Your Crypto Life.
    Sign-up FREE to receive our extended weekly market update and coin analysis report
    We NEVER send spam. You can unsubscribe at any time.
    Invalid email address
    Thanks for subscribing!
    Footer Logo
    About
    Advertise on CryptoPotato
    About Us | Contact Us | Careers
    Editorial Policy
    Terms of service | Privacy Policy | GDPR
    More Sections
    IEO List | Evaluations
    Airdrops
    Scholarship
    Disclaimer
    Disclaimer: Information found on CryptoPotato is those of writers quoted. It does not represent the opinions of CryptoPotato on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. Full disclaimer
    © Copyright CryptoPotato 2016 - 2021
    Scroll to top
    One Weekly Email Can Change Your Crypto Life.

    Sign-up FREE to receive our extended weekly market update and coin analysis report

    We never send SPAM. You can unsubscribe at any moment
    Invalid email address
    Thanks for subscribing!