The U.S.-based company Compass Mining plans to sell $30 million worth of bitcoin mining equipment that’s currently located in Siberia. After the U.S. government approved the Bitcoin mining operation Bitriver, and 10 subsidiaries, Compass Mining decided to sell its mining rigs. A company executive said that Compass wants to dispose of 12 megawatts.
Compass hopes to sell 12 MW worth of Bitcoin Mining Capacity to Russia for Clients
According to Compass Mining’s CEO Whit Gibbs, the firm is selling $30 million in mining equipment that is currently located in Siberia. Gibbs spoke to Bloomberg Friday to explain that the company hopes to be able obtain the funds to repay approximately 2,000 customers.
Compass provides hosting services. The mining equipment used in Siberia was rented by Compass customers. During the last year before the Ukraine-Russia conflict, Russia became a preferred “hotspot” for bitcoin miners as electricity in the country is much cheaper than most regions worldwide.
In the Russian Federation and Siberia electricity rates can range from $0.03 to 0.03 per kWh. After the Ukraine-Russian war, Russian crypto mining was considered as a means for the country to avoid sanctions. One of the biggest ethereum mining pool stopped serving Russian citizens.
American Miners Feel Financial Pressures from Sanctions
Last 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 connected to the operation. Bitriver’s subsidiaries and the company were added to the Specially Designated Nationals list (SDN), which prohibits any U.S. citizen or company from transacting with designated entities.
Compass Mining’s decision to sell $30 million in mining equipment follows Bitriver being added to OFAC’s SDN list. Gibbs stated that U.S. miner’s are suffering financial hardships due to sanctions. “I understand the sanctions; in this case, the punishment is outsized for American miners,” Gibbs explained to Bloomberg on Friday.
What do you think about Compass Mining’s decision to sell $30 million in mining equipment located in Russia? Comment below to let us know your thoughts on this topic.
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