Russian Cryptocurrency Miners Take Advantage Of The Bear Market By Stockpiling ASIC Devices
Even though demand for mining devices surged in Q4 2022, the ongoing crypto mining issue doesn’t appear to be troubling Russian cryptocurrency miners.
According to local news outlet Kommersant, Russia-based suppliers of crypto mining hardware claim that ASIC (application-specific integrated circuit) chips developed exclusively for mining have seen a dramatic surge in demand.
Massive Sales Of ASIC Devices
Local dealer, Chilkoot, asserted that its ASIC sales in the last 60 days alone exceeded its total sales for the third quarter. By comparison, the distributor said it sold 65% more mining gear over the previous nine months.
“We are dealing with legal enterprises, and we observe that they began to buy 30% more equipment in one transaction than at the beginning of the year,” says Artem Eremin, development manager at Chilkoot.
At BitRiver, the biggest data center in Russia, the demand for crypto mining services has reportedly increased by 150% over the last ten months. The demand for cryptocurrency mining equipment is rising in Russia, and the global mining industry is having trouble.
In late November, on-chain data shows that global Bitcoin (BTC) mining revenue dropped to two-year lows. Several mining companies, like Argo Blockchain and Core Scientific, have even questioned whether they could continue operations.
These companies are also affected by the current bear market in the crypto market space.
Profitability Of Bitcoin Mining In Russia Questioned
Meanwhile, the co-founder of 51ASIC, Mikhail Brezhnev, said that mining Bitcoin in Russia might still be profitable despite a significant drop in its price this year. According to the CEO, mining one Bitcoin with the most modern equipment could yield around $11,000 at an electricity cost of $0.07 per kilowatt-hour.
In Vladislav Antonov’s opinion, the current market environment has been favorable for the Russian crypto-mining industry. Antonov works as a financial analyst for BitRiver.
He noted that a decrease in purchase prices sparked the massive demand for ASIC equipment in the wholesale market. Antonov added that prices of ASIC equipment are now as close to the cost of manufacture as possible.
The analyst further said that was the best place to begin investing. According to Antonov, a new mining company that starts operations during this bear market could generate “tens of percent” in profits over the next three years.
The average decline of more than 50% in the shares of publicly traded mining this year may harm investors’ faith in the sector. However, for those who plan to invest long-term, this could be a fantastic chance to bottom-fish for appealing value.
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