The Government of Russia, like China and many other countries, had initially banned the use of cryptocurrency. But ever since Russia’s invasion of Ukraine began, it has been hit by various sanctions from nations all around the world. With countless sanctions and restrictions on trade, the Russian government was forced to adopt a pro-cryptocurrency stance. The sanctions have forced oil giants like Gazpromneft to investigate new ways to exploit natural resources for cryptocurrency mining. As a result, the oil giant announced a collaboration with BitRiver, a Bitcoin mining company, to fulfill the energy requirements of the project.
BitRiver is the first cryptocurrency mining company to be sanctioned by the United States as part of the sanctions against Russia. After a month, the company issued a statement stating that the U.S. claims were “unfounded and false,” and that business continued as usual.
BitRiver Partners With Gazpromneft For Sustainable Crypto Mining in Russia, Despite U.S Sanctions
BitRiver’s CEO, Igor Runets, said the company intends to eventually build a mining infrastructure in Russia with the help of Gazpromneft. The infrastructure would generate up to 2 Gigawatts of electrical power – far more than the facilities built by U.S. mining company Riot Blockchain in Texas.
“Over the next two years, BitRiver intends to implement projects to create its own data centers for power-intensive computing with power scaling up to 2 [gigawatts], including [petroleum gas], which will additionally provide high and stable power consumption.”
During Gazprom’s oil extraction operations in Russia, carbon dioxide (CO2) released from the drilling process will be used to generate surplus electricity. This partnership was disclosed by the St. Petersburg International Economic Forum. Many companies face this problem because they must burn the fuel in the atmosphere, but Gazpromneft’s solution may be a better option.
Oil Giant ExxonMobil to Use Bitcoin Mining to Get Rid of CO2 While making a Profit
Bitcoin and cryptocurrency mining have been a topic of interest to conservationists for the past few years due to their high energy consumption. Nevertheless, efforts like this could end up reducing CO2 emissions for oil companies.
Gazpromneft is not the first company to enter the crypto mining market. During late 2020, the company opened a cryptocurrency mining facility at one of its oil drilling sites in Siberia, Russia; however, they did not intend to operate the mining farms, but rather to supply electricity to the miners.
CNBC reports that U.S. oil giant ExxonMobil has been working on a secret project for more than a year that will use Bitcoin mining to get rid of CO2 while simultaneously making profits. Maybe initiatives like this can start changing the global view of crypto mining, portraying it as part of the solution rather than the problem.
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