Russian crypto-mining operator Bitriver plans to use the electricity produced by Gazprom Nft for digital coin minting. As part of a new agreement, the mining company will in return develop the digital infrastructure at the oil producer’s wells in Russia.
Crypto Mining Operator Bitriver Will Cooperate With Russian Oil Giant Gazprom Neft
Russia’s third largest oil producer, Gazprom Neft, will power data centers operated by the country’s leading crypto mining company, Bitriver. Associated petroleum gas (a combination of oil and natural gas) will produce the electricity required for production of digital currencies.
According to RBC Crypto, the agreement was part of a memorandum on cooperation between the two companies signed during the St. Petersburg International Economic Forum. After the Russian mine operator had been placed under U.S. Sanctions, this announcement was made.
In accordance with the agreement, the mining firm will develop the digital infrastructure at Gazprom Neft’s oil fields and provide services relying on computing hardware, the report details.
Gazprom Neft’s business model does not encompass digital currencies but the oil giant is seeking solutions that would allow the “beneficial use” of the associated gas obtained during oil extraction.
Gazprom Neft has already constructed the necessary infrastructure to mine crypto assets using the associated gas. It is located in three Russian regions.
Gazprom Neft is Gazprom’s oil subsidiary. The initial reports that Gazprom Neft is providing bitcoin miners with the opportunity to take advantage of the extra gas from oil drilling were made public in January 2013. U.S. businesses have also used stranded natural gas for crypto mining.
Oman, a country rich in oil, announced plans to use associated gas to mine Bitcoin. This will reduce harmful emission into the atmosphere. A 350-million-dollar stake was purchased by Oman in Crusoe Energy Systems Inc. in America, which is a specialist in crypto mining using excess fuel.
What do you think other oil companies will do to encourage cryptocurrency miners and to share associated petroleum gas with their own businesses? Let us know your thoughts in the comment section.
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