Cryptocurrency miners in Russia appear to be unbothered by the Ongoing Crypto Mining Crisis as local demand for mining hardware reportedly increased in Q4 2022.
Some crypto mining hardware distributors in Russia have faced a significant increase in demand for application-specific integrated circuit (ASIC) chips designed for mining, according to local news agency Kommersant. reported on December 1.
Local distributor Chilkoot reported that its ASIC sales in November and October exceeded all sales made in the third quarter. Over the past nine months, the dealer reportedly sold 65% more hardware than it did in 2021.
“We are working with legal entities and we see that they started buying 30% more equipment in one transaction than at the beginning of the year,” Chilkoot development manager Artem Eremin said.
BitRiver, the largest cryptomining-focused data center facility in Russia, has also seen a notable increase in demand, reportedly experiencing 150% growth in the past 10 months.
Russia’s reported surge in demand for cryptocurrency mining hardware comes at a difficult time for the mining industry, with Bitcoin totaling (BTC) Mining revenues hit two-year lows at the end of November. Several mining companies, including Argo Blockchain and Core Scientific, have even questioned whether could continue operations due to the massive losses caused by the current bear market in crypto.
Miners in Russia are likely to accumulate more and more crypto ASICs due to the reduced prices of mining devices, as well as low-cost energy.
51ASIC co-founder Mikhail Brezhnev reportedly said that Bitcoin mining in Russia it may still be profitable despite a massive drop in BTC price this year. According to the executive, the cost of mining 1 BTC at the electricity cost of $0.07 per 1 kilowatt-hour with the most up-to-date equipment can bring in approximately $11,000. At the time of writing, Bitcoin is trading at $16,975, 70% less than last year. according to to CoinGecko data.
The industrial crypto mining market in Russia has reportedly benefited from the current market situation, BitRiver financial analyst Vladislav Antonov said. He noted that the demand for ASIC equipment in the wholesale segment increased due to a drop in purchase prices, which have come as close as possible to the cost of production. That is the best entry point for investment, the expert said.
According to Antonov, a mining entry during a bear market can potentially generate “significant gains of tens of percent” over a three-year period.