The Arctic region is seeing new waves of development in the form of Bitcoin mining.
A news publication on Bloomberg stated that Bitcoin mining is pretty much active in the Arctic circle. Norilsk, which is a Siberian city known for mining giant MMC Norilsk Nickel PJSC. The city has a sparse population of around 170000.
But it is one of the largest settlements in the Polar Circle and can be reached by plane or boat. Norilsk may soon become famous for the simple reason that it will host the first crypto mining farm in the Arctic region for developing Bitcoins.
Mining News is a site that provides mining and exploration industry news had this to tweet on the scenario in the Siberian city of Norilsk.
BitCluster is the Russian owner of the facility in the Siberian city of Norilsk. They are planning to have an extension of the operations from 2020 itself. In the mining farm, visitors can find a Bitcoin sculpture symbolizing the developments being made in the region.
Traders and investors might know that Bitcoin mining is a transaction that involves the blockchain with miners getting rewards for six bitcoin per block mined. The mining farm is capable of serving clients globally, including the US, Japan, and Switzerland.
How is BitCluster playing a crucial role in the development of the area?
Vitaly Borschenko, who is the co-founder of BitCluster, said in an interview that the Siberian city of Norilsk has extremely freezing temperatures of less than 40 degrees Celsius. This makes it the coldest regions on the earth.
The city is quite remote; locals call Russia as the mainland because nothing much of any action ever happens here. Temperature plays a huge role in running the process because they need power and cooling.
BitCluster has operations next to Norilsk Nickel that was closed in 2016. This is a former Stalin-era nickel plant owned and operated by Norilsk Nickel. It helps BitCluster function properly because of the constant power supply.
Borschenko added that it is the ideal place for bitcoin mining. The area is freezing, and the power supply is not connected with any Russian power grid. The mining farm uses fruits and juices shipping containers and can hold more than 350 machines like the Antminer S19.
They operate using nine containers that come in different sizes. During the polar night in Norilsk from the end of November, it receives less sunlight. Borschenko also said that the BitCluster becomes the second-largest power consumer after Norilsk Nickel.
Though the temperatures typically around -10 degrees Celsius, the crypto mining facility still needs power from Norilsk Nickel. BitCluster is making use of engineers from their region and nearby Siberia places, including Angarsk and Bratsk.
This allows them to permanently work from the region without moving around in treacherous climatic conditions. BitCluster is hiring local Norilsk employees too who can work on the mining farm.
BitCluster plans to exceed the capacity shortly to more than 30 megawatts by this year. If the mining farm runs in full capacity, it can mine more than six bitcoins in 24 hours.