In spite of the ongoing cryptocurrency mining crisis, it would appear that Russian cryptocurrency miners are continuing to buy ASICs miners and other mining hardwares in large quantities during the fourth quarter of 2022.
According to a Dec. 1 report by the Russian news outlet Kommersant, the demand for mining-specific application-specific integrated circuit (ASIC) chips has caused some distributors of cryptocurrency mining hardware in Russia to experience severe shortages.
Increase in sales of ASIC Miners
Chilkoot, a local electronics retailer, experienced an unprecedented surge in ASIC sales during the last two months of this year. Reports indicate that their hardware revenue jumped by 65% over the first nine months compared to last year’s equivalent period – more than double their entire Q3 performance!
Chilkoot development manager Artem Eremin said:
“We are working with legal entities, and we see that they began to buy 30% more equipment in one transaction than at the beginning of the year”
BitRiver, the biggest data center in Russia focused on cryptocurrency mining operations is experiencing a major surge. The facility has witnessed an astounding 150% growth rate over the course of only 10 months!
Despite tough market conditions, Russia has revealed a striking increase in its need for cryptocurrency mining hardware. Recently-declining Bitcoin mining revenues have left some firms stumbling to stay afloat – Argo Blockchain and Core Scientific among them. The current bear crypto-market is having an undeniable effect on the industry as struggles continue even with newfound demand from abroad.
Russian miners may be hoarding crypto ASICs
Mikhail Brezhnev, co-founder of 51ASIC, allegedly stated that Bitcoin mining in Russia may still be lucrative despite this year’s significant BTC price decline. According to the CEO, the cost of mining 1 BTC with the most modern equipment at an electricity cost of $0.07 per kilowatt-hour is around $11,000. According to data from Crypto.ro, Bitcoin is trading at $16,994 at the time of writing, a decrease of around 70% over the past year.
Despite the current market volatility, BitRiver’s Vladislav Antonov affirms that industrial crypto mining in Russia is reaping benefit. According to him, diminishing prices of ASIC equipment have created a prime investment opportunity due to their proximity with production costs. It appears now may be an ideal time for investors interested in this sector!
Antonov suggests that astute mining investments made during bear markets can see a potential for significant returns in the long run, with some investors reaping gains of up to tens percent over three years.