Russian Company Gears Up for Mining Challenge

FinTech, Innovation, News | August 11, 2017 By:

A Bloomberg News report indicates a Russian company is gearing up in a big way to enter the bitcoin and ethereum mining market.

Russian Miner Coin, co-owned by Dmitry Marinichev, a close advisor to Russian President Vladimir Putin, said he plans to raise $100 million in cryptocurrency to back plans for mining operations. To do so, its holding an initial coin offering (ICO) to entice customers for its RMC tokens.

Those that back the company will be entitled to 18 percent of the revenue earned, according to a presentation posted on its website.

RMC will attempt to minimize its power consumption by using semiconductor chips designed in Russia for use in satellites, according to Marinichev, who was speaking at a news conference in Moscow. Russia has an estimated 20 gigawatts of excess power capacity and low per-kilowatt-hour pricing for its consumers, less than China, the current major bitcoin mining country.

“Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future,” Marinichev said.

The company initially plans to locate mining computers based on Bitfury chips in individual Russian households to challenge China and take advantage of the country’s lower power costs.