Mining farm in Norilsk

6 dias ago 0 23

In terms of total hash rate, Russia made it to the world top 3. This was possible thanks to the cold climate and relatively inexpensive electricity. These factors have made BitCluster popular with clients who left China after the tightening of laws. The mining farm in Norilsk earns more than $100 thousand on bitcoins and is gradually increasing capacity so that more people can move ASICs to this city.

BitCluster company information

The Russian organization offers customers ready-made solutions in the field of cryptocurrency mining. In June 2017, the company appeared on the domestic market, building several farms in the Ivanovo and Krasnoyarsk regions, Khanty-Mansiysk, Angarsk, and Bratsk. The BitCluster project is a member of the Russian Association of Cryptoindustry and Blockchain (RAKIB) and in 2019 became a prize winner in one of the Blockchain Life Award nominations.

BitCluster offers infrastructure for hosting hardware and also sells devices. The online store offers more than 10 integrated circuits for Bitcoin mining. For large clients, the company provides consulting services and offers unique solutions.

In Khanty-Mansiysk, a hoster created an unusual data center that gets electricity by flaring gas. Previously it was simply utilized, but now it is used to power ASICs.

Where the mining farm is located

The data center is built in the Krasnoyarsk region, more specifically, in Norilsk – a cold northern city. This place has long been considered by the company’s management because it is perfect for creating industrial farms. Thanks to the climate and the low cost of electricity, the asic hotel remains “afloat” even during the cryptozyme.

BitCluster chose an abandoned factory, closed in 2016, for the location of a mining farm in Norilsk. The territory of Nornickel is advantageous in that it has its own power unit to partially meet the needs of the data center.

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Advantages of locating a mining farm in Norilsk

Most large data centers are located in cold regions remote from megacities. The main advantage of this approach is saving on building rent, electricity, and cooling.

In winter, the temperature drops below -40 degrees Celsius, making the city one of the coldest communities. In the case of mining, this eliminates unnecessary cooling costs. A passive ventilation system with Arctic air works just as well as a lot of coolers.

In addition, energy is cheaper in Norilsk than in other regions. In 2022, BitCluster sold a kW of electricity for only 5.4 rubles. The price includes equipment maintenance and 24/7 tech support.

The principle of operation of a mining farm

The company provides resources for the installation of devices – it does not mine tokens itself, but is engaged in hosting. BitCluster mining farm maintains optimal conditions for safe and trouble-free operation of asics. The company guarantees the safety of the equipment, so it responsibly treated the arrangement of the data center and the selection of personnel. Features:

Stable power supply.
Copper cables designed for high current capacity and its sharp spikes.
Industrial-type cooling system to remove heated air.
Uninterrupted access to the Internet with optical lines from different providers.
Air humidity control to prevent condensation on chips.
Remote management of the farm through a personal cabinet.
Fire protection.

The mining farm in Norilsk has round-the-clock security, and the territory can be entered only with a pass. Asics are serviced by employees from Russia, USA, China, who have been trained at the Bitmain school.

To use the hosting services, the client needs to sign a contract and pay monthly maintenance fees for the machines. The user will be able to independently choose the coin to be mined in the personal cabinet.

View from the inside

Bitcoin farm in Norilsk is located in several decommissioned containers for fruit transportation. Each can accommodate up to 360 Antminer S19 asics. In total, the company planned to place the devices in 11 boxes after increasing the power to 31mW.

A shipping container is a great option for a mining farm. It is inexpensive and safe to set up a farm in it, as it is possible to create powerful ventilation, and the walls do not retain heat well.

Crypto farm capacity

Initially, the farm in Norilsk was designed for 11.2mW of electricity. In 2021, the company expanded the power grid to 31 mW. This infrastructure is enough to install more than 3 thousand Bitmain Antminer L7 ASICs.

How much the Norilsk mining company earns

BitCluster does not disclose data on revenues, the number of customers, and since 2021 does not publish information about capacity expansion. It, like other mining companies, has been heavily affected by the onset of the long cryptozyme.

In 2023, the value of Bitcoin does not exceed $30 thousand, which is 50% lower than the peak values of 2021. At the same time, the hashrate has increased 3 times: from 107 Eh/s in July 2021 to 320 Eh/s in May 2023.

According to the data for 2021, the mining farm generated revenue of more than 15 million rubles per day. The table provides detailed information.

Item of income (expense)	Amount
Token mining	RUB 450 mln.
Spending on electricity	22.176 million rubles
Equipment maintenance	1 mln

The profitability in 2021 was more than 2000%. The high profitability was due to the fact that the farm totaled about 1Eh/s. This amounted to about 1% of the total Bitcoin hashrate.

There is no up-to-date information about the farm’s revenue, as the company has remained silent since the beginning of the cryptozyme. However, according to the global changes, we can conclude that the profit should have fallen at least 6-8 times. Therefore, the company does not mine, but is engaged in hosting, the income from which is stable.

The future of the cryptocompany BitCluster

Experts expect that in the coming years, mininghosting services will become more popular. In Russia, they plan to create laws prohibiting token mining in residential premises. Because of this, private miners will have to move asics to data centers.

Only large projects, such as BitCluster, are predicted to develop. Small ones will leave the market. Therefore, the Russian data center in Norilsk will have more clients. However, along with the increase in demand, competition will intensify, which may lead to an exodus of institutional miners to larger and more profitable farms.

Frequently Asked Questions

🔔 Is it possible to lease equipment?

No. The company only deals with hosting and selling asics for token mining.

📌 How do I create a personal account on the site?

It is worth signing a contract with BitCluster first. After that, the client will be given a login and password to track hash rate, connect to pools, etc.

💳 How to deposit?

Users make deposits in the personal cabinet according to the tariff specified in the contract. The company accepts payments from bank cards of MIR, Visa, Mastercard systems.

🔥 How often does the farm shut down?

The uptime of the mining hotel reaches 98% per year – the equipment does not work for no more than one week in 365 days. This is a relatively high rate.

📢 Which devices are suitable for hosting?

The company only accepts special purpose integrated circuits. It does not have the infrastructure to support video cards and processors.

✨ Where are the block creation rewards credited?

When the hardware is connected to a pool (Binance Pool, AntPool and others), payments are credited directly to the user’s wallet. Asik-hotel does not offer its own platform for mining and does not act as an intermediary.

⚡ What is RAKIB?

This is a non-profit organization that unites participants in the domestic cryptocurrency market. Its goal is to integrate blockchain into the Russian economy and popularize digital assets.

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Author: Saifedean Ammous, an expert in cryptocurrency economics.