Russian State, Crypto Miner BitRiver Aim for BRICS Expansion
Crypto Mining
Russia
Move may be Moscow’s most significant step yet, as crypto pivot continues
Last updated:
October 20, 2024 23:00 EDT
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Tim Alper
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Tim Alper
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Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked…
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Last updated:
October 20, 2024 23:00 EDT
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The Russian state and the nation’s biggest
crypto miner
BitRiver have unveiled plans to build mining data centers in BRICS nations.
Per
RBC
, the deal involves the Russian Direct Investment Fund (RDIF), the country’s sovereign wealth fund.
The RDIF and BitRiver say they will work together to “build data centers in BRICS countries.”
Crypto Miner BitRiver Aims for BRICS Expansion?
The parties made their announcement at the BRICS Business Forum, held in Moscow on October 18.
They also said they would work on “AI technology” projects and strive to “increase Russia’s share in the global computing power market.”
The crypto miner BitRiver operates 21 data centers in Russia. It is currently building 10 new centers.
The parties did not say if they had concluded any deals with any BRICS nations. But they said that the world “has a shortage of free space in energy-intensive data centers.”
Russia and Russian firms will thus look to “create new opportunities” based on their “experience,” the parties said.
The partners will focus on expanding the potential of data centers with the possibility of further scaling of technologies in the BRICS markets.
RDIF CEO Kirill Dmitriev said that his organization and BitRiver would “focus on expanding the potential” of crypto mining data centers “with the possibility of further scaling of technologies.”
Dmitriev added that the development of computing power for AI was “a priority for Russia and its BRICS partners.”
Crypto on Agenda in Kazan?
The RDIF is currently chairing the BRICS Business Council’s working group on financial services and investments.
The fund wants to create “a joint investment platform” for BRICS member countries to “invest in high technologies, including AI.”
BRICS countries think they could boost their annual GDP by about 1.2%, or $370 billion per year, by launching AI-powered businesses.
Moscow launched the RDIF in 2011 with the goal of making strategic investments in “high-growth” Russian industry sectors.
Crypto Pivot Intensifies
The move is arguably the most significant step to date from Moscow in its recent crypto pivot.
Moscow has tried to publicly call for caution in all things crypto-related. However, the government appears to be ready to back its mining sector as a major economic growth engine.
Evidence of this can be seen chiefly in recent statements from the Russian Energy Ministry. The ministry has stated that it is prepared to
provide miners with surplus power
.
Further proof can be seen in the case of Gazprom, the majority state-owned oil and gas giant, which has recently launched a crypto mining subsidiary.
Additional evidence comes in the form of local government-backed plans to construct new crypto mining facilities.
Last month, the head of the Komi Republic’s government
announced the construction of two new crypto mining data centers in Mikun and Sindor
.
These will cost a combined total of $27.6 million, with a total of 15 centers slated for launch in the republic.
Sanctions Under Threat?
The nation’s mining industry also appears confident that some of its causes could be raised on the fringes of the upcoming BRICS summit in Kazan (October 22 to 24).
Kazan, the venue for this week’s BRICS summit. (Source: Amikeco/V. Ivanov)
Top lawmakers have suggested that Russian miners could effectively sell their tokens to international importers who could then use
Bitcoin (BTC)
and other cryptoassets as settlement tools.
Such a move, Moscow appears to believe, will allow many firms to bypass Western sanctions, which focus primarily on banks and USD transactions.
Miners, meanwhile, claim that they are ready to start paying taxes on their earnings, bringing the Russian Treasury hundreds of millions of USD worth of revenue every year.
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