Study: Nearly a quarter of Russia's mining capacity runs on associated gas

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Analysts at Vygon Consultingcalculated: 10 mining enterprises using energy from oil fields consume 85 MW - this amounts to 23% capacity of mining farms in Russia.

In July, the revenue of mining farms using the energy of associated petroleum gas reached 400 million rubles with an average BTC rate of $20,000.

Vygon Consulting experts predict that withFrom July 2022 to July 2023, at the same rate, annual revenue will be 4.8 billion rubles. Analysts have calculated that mining centers with new devices using the free energy of associated petroleum gas only pay for themselves at a BTC rate of $21,600. If you mine on equipment that has already paid for itself, then at a price of this gas of 1,000 rubles per thousand cubic meters, the cost of mining will be $12 000 per BTC.

Back in 2019, Crusoe Energy Systemsannounced the development of mobile modular data centers that can be used for mining cryptocurrencies, consuming excess gas remaining during oil production. In Russia, the production of cryptocurrency using associated petroleum gas began to be carried out by Gazpromneft three years ago. Until 2020, these were pilot projects. Now this practice of cryptocurrency mining is already used in three regions of the Russian Federation. In 2021, oil companies submitted to the Ministry of Industry and Trade, the Ministry of Digital Development and the Central Bank of the Russian Federation a project involving the extraction of cryptocurrencies from oil fields using associated gas. In 2022, Gazpromneft and the mining company BitRiver entered into a partnership to mine cryptocurrencies using such fuel.