Compass to Sell $30 Million in Crypto Mining Equipment Located in Russia – Mining Bitcoin News

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Report: Compass to Sell $30 Million in Crypto Mining Equipment Located in Russia
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U.S.-based company Compass Mining plans to sell $30 million worth of bitcoin mining equipment currently located in Siberia. The decision to sell the mining equipment comes after the U.S. government approved bitcoin mining business Bitriver and ten subsidiaries. Compass hopes to offload 12 megawatts of capacity, according to company executives.

Compass Wants to Sell 12 MW of Bitcoin Mining Capacity in Russia to Pay Customers

According to Whit Gibbs, CEO of Compass Mining, the company is selling $30 million worth of mining equipment currently located in Siberia. Gibbs explained in an interview with Bloomberg on Friday that the company hopes to be able to raise funds from the sale to pay back about 2,000 customers.

Compass provides colocation services, and mining equipment in Siberia is owned by customers who rent colocation space. In the last year before the Ukraine-Russia conflict, Russia became the go-to “hot spot” for bitcoin miners because electricity in the country was much cheaper than in most parts of the world.

For example, electricity prices in the Russian Federation, Siberia and Norilsk can be as low as $0.03 per kilowatt-hour (kWh). However, after the Ukrainian-Russian war began, Russian crypto mining began to be evaluated as a way the country could avoid sanctions, and one of the largest Ethereum mining pools stopped serving Russian nationals.

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U.S. miners feel financial constraints from sanctions

Last week, the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) sanctioned Russia-based bitcoin mining company Bitriver and ten subsidiaries associated with the business. Biriver and its subsidiaries are placed on the Specially Designated Nationals (SDN) list, which means that no U.S. individual or company is allowed to transact with designated entities.

Bitriver was added to OFAC’s SDN list ahead of Compass Mining’s decision to sell mining equipment worth $30 million. Gibbs detailed that U.S. miners are being affected by financial constraints caused by sanctions. “I understand the sanctions; in this case, the penalties for U.S. miners are disproportionate,” Gibbs explained to Bloomberg on Friday.

tags in this story

Bitcoin Mining, Bitriver, Bloomberg, BTC Mining, BTC Mining Equipment, Compass Mining CEO, Compass, Compass Mining, Financial Sanctions, Miners, Mining Equipment, Norilsk, OFAC, Russia, Russian Federation, Sanctions, Siberia, U.S. Treasury, Ukraine, Ukrainian-Russian War, Whit Gibbs

What do you think of Compass Mining’s decision to sell $30 million of mining equipment located in Russia? Let us know what you think about this topic in the comments section below.

Jamie Redman

Jamie Redman is Head of News for Bitcoin.com News and a fintech reporter based in Florida. Redman has been an active member of the cryptocurrency community since 2011. He is passionate about Bitcoin, open source code and decentralized applications. Since September 2015, Redman has written over 5,000 articles for Bitcoin.com News on the disruptive protocols emerging today.

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