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Investor Buys Russian Power Plants to Mine Cryptocurrency

A Russian businessman has purchases two power plants he'd like to use to mine crypto-currency, at the cost of 160 million rubles (about US$3 million) -- it's the first such deal in the country


Two electric power stations in Russia have been sold for the purpose of cryptocurrency mining, the Kommersant newspaper reported, citing sources. It is the first such deal in the country.

The two power stations are in Perm Region, on the western slopes of the Middle Ural Mountains, and in the neighboring Republic of Udmurtia. The facilities will be used to create a data center and a center for cryptocurrency mining, the newspaper reported. The stations were reportedly sold for about 160 million rubles (about US$3 million).

The reported new owner of the power stations, businessman Aleksey Kolesnik, has indirectly confirmed the acquisition, but said that cryptocurrency mining will only be possible after Russia adopts the relevant legislation.

Source: RT


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Russian businessman Aleksey Kolesnikov has bought two power plants in Russia's Primorsky Krai and Udmurtia to create a data-center and a mining plant, Russia's Kommersant newspaper said Friday.

"We're planning to create a data-center in view of the Russian legislation, saying that all information should be stored in Russia," Kolesnikov said, adding that "we're thinking about the creation of a mining plant as well, but only after the corresponding regulations are adopted in Russia."

Though the effectiveness of the two power plants is not very high, existing Russian legislation, as well as low energy prices, make them promising as a basis for the creation of data-centers.

Russia is currently elaborating legislation which will alter the regulation of the cryptocurrency market, with a particular focus on initial coin offerings (ICOs.) Chairman of the State Duma's financial markets committee Anatoly Aksakov said earlier that he expected the draft law to be completed by next March.

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Source: Sputnik


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