The largest mining farms in the world - a short crypto-geographical excursion

Review of the largest mining farms

Mining farms, or as they are also called mining pools or data centers, are traditionally set up in countries where favorable conditions have been created for this, in particular the following:

• large energy capacities (including from alternative sources), and as a result, a fairly low cost of energy production;
• loyal legislative conditions for the extraction of coins and their further use.

Many of my readers are interested in how to create their own cryptocurrency and whether this makes sense, and in one of the materials on www.gq-blog.com I described all these nuances. But this method is only good when it comes to developing your own token. You can get existing ones by investing in mining or purchasing assets on stock exchanges and exchangers.

For now, I will focus on the most famous computer centers, which have been operating stably for several years and are quite interesting, taking into account certain points.

Large mining centers and their performance indicators

The largest farms in Russia

I think that the information presented below will pleasantly surprise you. Russia is one of the countries in which the largest amount of military-technical equipment is mined. At one time it was second only to China and Canada and the United States, and now also to Iceland and Kazakhstan.

An indicative aspect is that most production centers are located near energy centers - hydroelectric power stations or nuclear power plants, which is dictated by the availability of electricity and short routes for its supply.

In addition, centers are often built where the average air temperature throughout the year is not very high, which is justified by creating conditions so that ASICs do not overheat and quickly fail.

According to insider information, there is a large farm in the Moscow region, where 600 BTC are mined per month. The hashrate of the “underground” center is up to 3 RN.

Bratsk

In this city, 25 thousand mining devices are installed in the BitRiver data center. The founders say that the capacity can be increased to 67 thousand, that is, almost 2.5 times. The average cost of 1 kWh excluding VAT is about 2.5–3 cents. According to insider information, the center belongs to close people from Oleg Deripaska’s circle.

The northern city is optimal for developing a center due to the long winter and a fairly large number of power plants in the region. The Bratsk hydroelectric power station is the largest in Russia and the third largest station in the world. That is why the Bratsk mining center is the largest in the CIS and has maintained this level for a long time. Despite the fact that almost 2 centuries ago poets and social activists were sent into exile here in 35-degree frosts, in 2022 it is quite a powerful industrial center with a population of almost 250 thousand people. The data center directly buys energy from En + Group and receives up to 100 MW.

An indicative fact: the local university has a discipline on blockchain and cryptotechnology, and the enrollment of students in this specialty is quite large every year.

Kirishi

We continue our virtual journey with mining farms and stop in the Leningrad region. At a facility with an area of ​​more than 4 thousand square meters. meters there are 3 thousand pieces of equipment. Electricity consumption is 20 MW. In order to organize the operation of the farm, over 500 million rubles of investment were attracted. Previously, this place was a laboratory for the production of fertilizers, but then the facility was purchased by Cryptouniverse. The company pays about 89–90 thousand dollars monthly for the electricity consumed. During this period, it is possible to produce over 300 military vehicles.

Pinery

There has been controversy about this place for a long time, and when information appeared in the press in 2018 that there would be a mining center here, at first not everyone believed it. According to plans, the launch of mining was supposed to occur in 2022, but has so far been postponed for an unknown time. The location is 40 km from St. Petersburg on the shores of the Gulf of Finland. Due to the proximity of the nuclear power plant, it is logical why this particular location was chosen.

Divnogorsk

In a city in the Krasnoyarsk Territory there is a mining farm that belongs to the BitBaza corporation. In terms of volume, it is one of the largest in Russia. In order to implement the project, it was necessary to invest about 3 billion rubles. The facility is located inside the Divny industrial park. The starting costs for electricity were 10 MW and the maximum permissible power was up to 120 MW. The center is interesting because graduates of the local university are recruited as specialists, and all the thermal energy received from ASICs is used to heat houses in the region. According to average estimates, such a company brings in up to 500 BTC per month.

Report from one of the largest Bitcoin farms

Bitcoin activist Jacob Bitsmith visited a large Bitcoin farm in China and shared his impressions and exclusive photos on his blog.

This farm in the Chinese province is one of the largest in the world. Right now it produces several petahashes/s, which is about 5% of the entire global Bitcoin network. But the farm is in the process of rapid construction. Trucks are constantly driving here, construction workers wear helmets, new equipment is being imported and installed.

In principle, one could call the building a “data center”, such a large area does it occupy: four former warehouse buildings 150 meters long and about 20 m wide, that is, 12,000 m2 in total.

But there is one feature that makes it difficult to use the word “data center.” The specifics of the Bitcoin business require that the main emphasis be on low cost. Cheap building, cheap equipment, cheapest materials and unskilled workers. Everything looks so poor that it cannot be compared with any real data center, where professional engineers work and high-quality equipment is installed.

The name "farm" fits perfectly. Here even the cooling systems are made of wet cardboard and fans. Water flows down the cardboard and evaporates under the pressure of air. Cheap and effective.

And here is a hole for the wires in the wall.

In the world of Bitcoin mining, if you don't expand and reinvest some of your profits, your income will decrease exponentially every day.

New ASIC mining rigs appear every month, and they are much more powerful than the previous ones. Here the principle “time is money” is put into practice. Whoever received new equipment a few days earlier and put it into operation will skim the cream and earn more than his competitor. We have to work hard, purchasing and installing more powerful systems every day. On a farm in China, freshly unpacked boxes are scattered everywhere.

Free space is already available for new equipment. When it ends, builders can build a new hangar nearby in a couple of days.

There is so much work to do that employees need a place to relax. Unlike other Bitcoin farms, none of the staff live here, it's just a bed to take a nap during your break.

At night the farm looks especially futuristic.

xakep.ru

Large farms in China

As of the end of 2022, 65% of all bitcoins in the world were mined in the Middle Kingdom. One of the most powerful farms was considered to be the one located in Sichuan. It was located in mines where coal had previously been mined, but after the reserves were exhausted, they were closed. The center is owned by Bitmain. There are 8 buildings and 25 thousand ASICs on the territory. Their smooth work is monitored by 50 employees. In addition to the BTC, one building contains equipment for obtaining Litecoin - a fork of Bitcoin. The center's employees are constantly located in this territory and have no right to leave it under the terms of the contract.

TOP 5 countries where cryptocurrencies “live well”:

1. Japan. Many believe that this is the birthplace of Satoshi Nakamoto , the creator of Bitcoin. The country is the first and only one to have a proper legal system regulating the trading of digital currencies. Japan is the largest cryptocurrency market. According to the analyst, about 40% of Bitcoin trading volumes in 2022 were conducted in yen.
2. Switzerland. The Cryptocurrency Valley – the canton of Zug, is considered one of the world’s most important ecosystems for the development of blockchain and cryptocurrency projects. Positive regulatory dynamics and permission to use Bitcoin as a means of payment attracts many investors. The canton of Zug has become home to such important projects as the Ethereum Foundation, Tezos, Dfinity, Bancor, ShapeShift.
3. Estonia. This small Baltic state is actively introducing modern technologies. Cryptocurrencies are not prohibited here, and they plan to introduce blockchain into healthcare, legislation and commerce systems. Estonia is the birthplace of Skype the cryptocurrency ecosystem is actively forming there . Several Bitcoin ATMs have already been installed, and payment cryptosystems are functioning.
4. Malta. In February 2022, the Maltese government decided to encourage projects related to blockchain technologies, cryptocurrencies and ICOs. Many companies are considering moving to this calm haven. At the same time, Malta is one of the leaders in online gambling; projects are being implemented there to introduce cryptocurrencies and blockchain into the gaming industry .
5. Singapore. This is not only a country that is developing incredibly quickly, but also a real paradise for cryptocurrencies. Stable policies, a favorable business environment, and reliable infrastructure are doing their job. Singapore is a major banking center, allowing unregulated digital asset exchanges .

Interestingly, on the website of the BlockShow Europe 2018 they presented a rating of European countries friendly to cryptocurrencies and blockchain. In addition to the aforementioned Switzerland and Malta, it included the UK, Gibraltar, Portugal, Denmark, Germany, the Netherlands, Finland and Belarus, which developed a system for regulating cryptocurrencies and established a zero tax on cryptoassets.

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Mining farms in America

A little more than 8% of the total global hashrate is located in America. One of the most famous corporations is Core Scientific, which bought 17,595 Antminer s19 from the Chinese ASIC manufacturer Bitmain. The exact amount of the contract is kept in the strictest confidence. The company owns 5 mining farms, which are located in Georgia and North Carolina, and one of them consumes a total of 381 MW of energy. According to Russell Kann, chief customer officer, it is technically possible to expand capacity to 450 MW. The centers operate 46% carbon-free.

The average price for 1 kW of energy in the USA is $0.12, and in China – $0.02.

CryptoUniverse

CryptoUniverse is a large mining farm located in the Leningrad region. on the territory of an abandoned Soviet laboratory in the city of Kirishi.

Of course, CryptoUniverse has modest computing power compared to industry leaders, only 20 MW, but the scale is still impressive: more than 3 thousand ASIC miners are located on an area of ​​4,000 square meters. m.

Mining farm in Kazakhstan

Currently there are more than 15 mining farms in the country. In order to create and develop them, investments worth $200 million were collected. The share of this country in the world hashrate is 6%. To develop industrial mining, the country's authorities intend to attract more than $730 million. Plus, the government creates favorable tax conditions for this and thus activates the investment climate.

I should note that mining farms of enormous scale, although they require huge initial investments, are quite effective and profitable projects due to their quick payback - up to 18 months. I can also understand the owners of such facilities who do not disclose the exact locations of the centers for security reasons. I am sure that others, such as Iceland and the Scandinavian states - Norway, Sweden, Finland, may soon join the list of countries that I spoke about today. The cost of electricity in them is quite low, but land rent is high, which is the most important “stumbling block” in solving this aspect.

I wish investors who invest in coin mining a favorable rate for them, and I wish the owners of the centers expansion of capacity and prosperity.

Author Ganesa K.

A professional investor with 5 years of experience working with various financial instruments, runs his own blog and advises investors. Own effective methods and information support for investments.

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05/17/2018: Bitcoin mining is dangerous for the global economy

Bitcoin mining requires more and more electricity every year. Approximately 0.5% of the world's power plant capacity goes to operating farms and mining installations. Costs could rise in the future and pose a serious threat to the global economy .

The scientific journal Joule published a study by Alex de Vries , a specialist in blockchain technologies. He claims that Bitcoin mining currently requires at least 2.55 gigawatts of electricity. By the end of the year, this figure could increase to 7.67 gigawatts - this is enough to provide electricity to a medium-sized European country (Austria, Ireland).

Alex de Vries says: “None of my colleagues tried to study the features of cryptocurrency mining from a scientific point of view. 0.5% is an impressive figure. If the cost of digital assets continues to grow, then the share of electricity costs will increase to 5% , which will negatively affect the global economy.”

Why is electricity consumption growing?

Energy consumption is primarily related to blockchain technology. Bitcoin mining turns into a large competitive lottery , where the winner receives a reward every 10 minutes for adding a new coin. It motivates participants to constantly increase the capacity of the system in order to get a larger piece of the pie, because 1800 BTC . Humanity has moved from household computers to huge farms, “bitcoin factories,” as de Vries called them.

De Vries says the government's first step should be to control mining farms . It is possible to allocate zones for the construction of enterprises for the extraction of cryptocurrencies, revise tariffs and maximum capacities.

Many experts consider de Vries’s research far-fetched, because cryptocurrency mining is carried out illegally , and the miners themselves do not share information about their capacities and costs. However, the problem exists, and requires active study of this industry and the development of regulatory standards and rules .

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