Sales of Bitcoin mining rigs in Russia surge in Q4: report

A new report from Kommersant revealed that sales of Bitcoin mining-Machines in the country surged in the fourth quarter, a trend supported by a resurgence in demand despite the crypto asset’s chaotic price action.

The significant increase was also boosted by cheap equipment and electricity prices.

• Chilkoot, which happens to be one of the official distributors of crypto mining rigs in Russia, saw more sales in the first two months of Q4 than in all of Q3.
• In the first nine months alone, 65% more sales were recorded than in the previous year.
• Mining prices fell nearly 20% in August and October, according to Chilkoot data. However, prices have remained the same over the past month.
• The mining hardware reseller also noted that its single-transaction equipment purchases are up 30% compared to the start of the year.
• BitRiver financial analyst Vladislav Antonov believes that the price of ASIC mining rigs, which is close to the cost of production, provides a good entry point for investments.
• Despite a fairly confident start, the price is hovering around Bitcoin currently near two-year lows, with hash rates declining slightly to remain around 240 million Th/s.
• But Russian revenue from minting the crypto asset has increased by multiples recently.
• This was also observed by Didar Bekbauov, the co-founder of Xive, who said,

“Hashrate growth came from Russia. Cheap electricity for households and businesses in some regions, cheap ASIC prices, sanctions, fewer investment opportunities, high-tech skills of people made Bitcoin mining a very attractive industry in Russia.”

• The latest development comes months after the Bank of Russia and the Ministry of Finance of the Russian Federation (MiFin) reached an agreement to allow crypto mining in energy-rich regions and ban it in energy-poor regions.
• Recently, the Russian State Duma, the lower house of parliament, has tabled a bill on legalizing crypto mining activities and selling mined crypto assets.

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