Compass Mining has planned to sell $30 million worth of bitcoin mining equipment that’s currently located in Siberia. The U.S.-based company made the decision to sell the mining rigs following the U.S. government sanctioning the bitcoin mining operation Bitriver and ten subsidiaries. According to a company executive, Compass is hoping to offload 12 megawatts of capacity.
Whit Gibbs, Compass Mining’s CEO said the firm is selling $30 million in mining equipment that is currently located in Siberia. Gibbs said the company is hopeful it will be able to obtain funds from the sale to pay off roughly 2,000 customers.
The company offers hosting services and the mining equipment in Siberia was owned by customers renting hosting space. Before the Ukraine-Russia conflict, Russia became a preferred “hotspot” for bitcoin miners as electricity in the country is much cheaper than most regions worldwide.
Electricity rates in the Russian Federation, Siberia, and Norilsk, electric costs can be as low as $0.03 per kilowatt-hour (kWh). It is worthy of note that after the Ukraine-Russia war began, Russian crypto mining started getting assessed as a way the country can avoid sanctions.