Compass to sell $ 30 million in crypto mining equipment located in Russia – Bitcoin Mining News

Compass to sell $ 30 million in crypto mining equipment located in Russia – Bitcoin Mining News

The American company Compass Mining plans to sell bitcoin mining equipment worth 30 million dollars, which is currently located in Siberia. The decision to sell the mining equipment came after the U.S. government sanctioned the Bitcoin bitcoin mining operation and ten subsidiaries. The compass hopes to relieve 12 megawatts of capacity, says the company’s executive director.

Compass hopes to sell 12 MW of bitcoin mining capacity in Russia to pay customers

According to Compass Mining CEO Whit Gibbs, the company is selling $ 30 million worth of mining equipment currently based in Siberia. Speaking with Bloomberg on Friday, Gibbs explained that the company hopes to be able to raise funds from the sale to pay off approximately 2,000 customers.

Kompas offers hosting services, and mining equipment in Siberia was owned by customers who rent hosting space. During the last year before the Ukrainian-Russian conflict, Russia became a preferred “hotspot” for bitcoin miners because electricity in the country is much cheaper than most regions around the world.

For example, electricity tariffs in the Russian Federation, Siberia and Norilsk, electricity costs can be as much as $ 0.03 per kilowatt-hour (kWh). However, after the Ukrainian-Russian war began, Russian cryptocurrency mining began to be assessed as a way for the country to avoid sanctions and one of the largest gatherings of ethereum mining. stopped servicing Russian citizens.

American miners are feeling the financial constraints caused by sanctions

Last week, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned a bitcoin mining company based in Russia, Bitriver and ten subsidiaries associated with the operation. Bitriver and its affiliates have been placed on the Special Purpose Nation (SDN) list, which means that no U.S. person or company can conduct transactions with certain entities.

Compass Mining’s decision to sell $ 30 million in mining equipment followed the addition of Bitriver to OFAC’s SDN list. Gibbs detailed that American miners were affected by financial constraints caused by sanctions. “I understand sanctions; in this case, the penalty is too great for American miners, “Gibbs told Bloomberg on Friday.

Labels in this story

Bitcoin mining, Bitriver, Bloomberg, BTC mining, BTC mining equipment, CEO of Compass Mining, Compass, Compass Mining, Financial sanctions, Miners, mining equipment, Norilsk, OFAC, Russia, Russian Federation, Sanctions, Siberia, US Treasury Department, Ukraine, war of Ukraine and Russia, Whit Gibbs

What do you think about the decision of Compass Mining to sell $ 30 million of mining equipment located in Russia? Tell us what you think about this topic in the comments section below.

Compass to sell $ 30 million in crypto mining equipment located in Russia – Bitcoin Mining News

Jamie Redman

Jamie Redman is a news anchor on Bitcoin.com News and a financial technology journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written more than 5,000 articles for Bitcoin.com News about the disruptive protocols that appear today.




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