Russia’s bitcoin mining company RMC is planning on opening up a new facility with the intention of mining one fifth of the global output of the international market.
Russian Mining Company set to restructure an old aluminum firm to a Bitcoin mining firm producing 20% of the total computational power required in global BTC mining.
Russian Bitcoin Mining Company (RMC) is targeting to reconstruct an aluminum factory in Karelia, Russia to build a digital hub that produces computational energy for BTC mining, AI and IT services in the local area. The Nadvoitsky Aluminum Plant (NAZ) Company is looking to get back into production since the US Foreign Assets Control (OFAC) sanctions its products to the US as its parent company Rusal’s owner Oleg Deripaska, a Russian oligarch was found to have ties with the Kremlin.
From Aluminum production to Bitcoin Mining
In a published post by RBC, the sanctions were lifted on the company once Oleg stepped down from his position in Rusal but production has barely taken off. In a restructuring effort by the company, the company is leasing out sections of the production site to create a digital hub and create employment for the locals dependent on the factory.
According to RMC’s Dmitry Marichinev, the company will occupy a section of the old production site and offer computational services for users as “an IT service.”
“Our idea is to redesign the plant and sell its computing power as a service, that is, provide an IT service.”
The report further claims that the firm is targeting control of 20% of BTC’s mining power, effectively making it one of the largest mining facilities in the world.
A shot at 20% control of BTC mining
The call to host miners controlling 20% of the total BTC supply seems rather ambitious from RMC. For reference, a block is mined at an average of 10 minutes with the block reward standing at 12.5 BTC. Doing quick calculations, a total of 1008 blocks are mined every week. With the price of BTC oscillating around $9,200 USD, 20% control of BTC mining activities translates to ~23 million USD every week.
However, with electricity prices in Russia significantly higher than the main BTC mining countries such as China, Yuri Pripachkin, President of Russian Association of Cryptoeconomics and Blockchain (RACIB), believes a realistic prediction lies around 5% to 7% control.
“For the Russian pool, it is realistic to focus on 5–7% of the total volume and the indicator very much depends on access to the corresponding electricity prices.”
Recently, a Texas based mining firm announced its plans to launch the largest bitcoin mining firm in the state showing the competition RMC faces in acquiring 20% of the total BTC mining hashing power.