A Russian aluminum plant is set to become Bitcoin mining after US sanctions forced it to close in 2018. The Russian aluminum giant Rusal rents out its plant. Nadvoitsy Aluminum, located in the northwestern region of Karelia, has a cryptographic startup called Russian Mining Corporation (RMC), according to the Russian news website RBC.
The US Foreign Assets Control Office (FOCA) imposed sanctions on Rusal in April 2018. At the time, the US Treasury Department described Rusal's majority shareholder, Oleg Deripaska, as a "designated Russian oligarch." ", Thus sanctioning the company.
RMC rents a small portion of the plant and plans to use its low-cost facilities and large footprint to install miners to take over much of the global bitcoin mining market. In collaboration with UK-based wallet and purse provider Cryptonex, Dmitry Marinichev, said the company plans to capture 20% of the current bitcoin mining market. According to RBC, Russia currently holds about 10% of the bitcoin extraction capacity in the world.
"The Rusal plant is no longer profitable, its electricity is practically no longer used and the inhabitants of the single-industrial town near the factory have nowhere to work," said Marinichev. to RBC: "Our idea is to redevelop the plant and sell its computing power as a service, that is, to provide an IT service. "
Under the agreement, Cryptonex has transferred to the mining company 42 million of its CNX stock warrants, valued at US $ 85 million at the time of publication, according to CoinMarketCap. The companies also came to finance the purchase of mining equipment for the new facility, Crytponex said in a statement.
Image of Bitcoin miners via CoinDesk archives