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Report: Compass to Sell $30 Million in Crypto Mining Equipment Located in Russia

The U.S.-based proprietorship Compass Mining plans to sell $30 million worth of bitcoin mining equipment that’s currently situated in Siberia. The decision to sell the mining rigs follows the U.S. government sanctioning the bitcoin mining operation Bitriver and ten subsidiaries. Compass is contemplating to offload 12 megawatts of capacity, according to a company executive.

Compass Hopes to Sell 12 MW of Bitcoin Coalfield Capacity in Russia to Pay Clients

According to Compass Mining’s CEO Whit Gibbs, the firm is selling $30 million in mining tackle that is currently located in Siberia. Speaking with Bloomberg on Friday, Gibbs explained the company is hopeful it leave be able to obtain funds from the sale to pay off roughly 2,000 customers.

Compass offers hosting services and the repository equipment in Siberia was owned by customers renting hosting space. During the last year before the Ukraine-Russia feud, Russia became a preferred “hotspot” for bitcoin miners as electricity in the country is much cheaper than most pales worldwide.

For instance, electricity rates in the Russian Federation, Siberia, and Norilsk, electric costs can be as low as $0.03 per kilowatt-hour (kWh). To whatever manner, after the Ukraine-Russia war began, Russian crypto mining started getting assessed as a way the country can avoid sanctions and one of the largest ethereum searching pools stopped servicing Russian nationals.

American Miners Feel Financial Constraints Caused by Sanctions

Up to date week, the U.S. Treasury department’s Office of Foreign Assets Control (OFAC), sanctioned the bitcoin mining firm located in Russia, Bitriver and ten subsidiaries fixed to the operation. Bitriver and subsidiaries were placed on the Specially Designated Nationals (SDN) list, which means no U.S. person or firm may transact with the designated entities.

Compass Mining’s decision to sell $30 million in mining equipment be a fans Bitriver being added to OFAC’s SDN list. Gibbs detailed that U.S. miners are being affected by financial constraints undertook by sanctions. “I understand the sanctions; in this case, the punishment is outsized for American miners,” Gibbs explained to Bloomberg on Friday.

Labels in this story
Bitcoin mining, Bitriver, Bloomberg, BTC Mining, BTC Mining Equipment, CEO of Compass Mining, Compass, Compass Look through, Financial Sanctions, Miners, mining equipment, Norilsk, OFAC, Russia, Russian Federation, Sanctions, Siberia, U.S. Exchequer Department, Ukraine, Ukraine-Russia war, Whit Gibbs

What do you think about Compass Mining’s decision to sell $30 million in read equipment located in Russia? Let us know what you think about this subject in the comments section below.

Jamie Redman

Jamie Redman is the Hearsay Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source jus civile civil law, and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com Press release about the disruptive protocols emerging today.

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