The management of Ekran, the largest glassware manufacturing factory in Siberia has announced that the plant intends to start mining bitcoin. The administration plans to spend 11 million rubles in the initial phase of the mining project.
The Novosibirsk-based glassware factory began as an electronics manufacturing plant in the USSR. It would later, in the 1990s, survive by switching to glassware manufacturing. Some years back, an industrial park that has the same name, Ekran, was built on its premises. There are close to 200 enterprises based there at present, which are employing an estimated 3000 people. However, the factory still has unused resources and empty spaces on the 27-ha premises.
Apparently, the industrial park’s management came up with the idea a mining operation. They intend to use their surplus electrical capacity and an empty workshop to start the crypto mining activity. Pavel Boboshik, the president of Ekran Board of Directors, said that they estimate that the initial investment will amount to up to 11 million rubles, an equivalent of about $200,000. They will use the unoccupied second floor of the factory to house the mining facility.
Boboshik told Tass, a local media source that they “are going to construct a facility for bitcoin mining and other major cryptocurrencies. We are going to use 11 million rubles on the initial investment. If the Board approves the project, the facility will start operating before the end of the year.”
Ekran is among the largest glass manufacturing factories in Russia. Last year, the plant produced about 460,000 glass bottles and jars.
Why Siberia?
Siberia accounts for over two-thirds of the Russian Federation’s land territory. While it is an extremely cold place, it is extraordinarily rich in various natural resources including minerals. This means abundant and cheap energy. For instance, in Novosibirsk, electricity rates can fall to as low as 3 to 4 percent per kWh in some areas. Like in several other places in Siberia, Novosibirsk city is becoming a favorite destination for many crypto miners. Advertisements offerings low-rent warehouses and offices are often abundant in local dailies.
Cryptocurrency mining generates a lot of heat and requires a lot of energy. Again, the powerful app-specific circuits used when processing bitcoin transactions usually consume huge amounts of electricity, and they require some serious cooling. Therefore, cheap electricity and a cold climate are two crucial factors that can considerably increase profitability when it comes to crypto mining operations and Siberia readily offers both.
In February, Vyacheslav Kravchenko, Deputy Minister of Energy, expressed a positive attitude towards crypto mining in Siberia. Kravchenko urged crypto miners to invest in Siberia, adding that they will be well protected. An online media source recently reported that several Russian energy firms are already offering services to cryptocurrency miners in the area. The heat generated by the crypto mining facilities is being utilized to warm several homesteads during extended cold Siberian winters. Bitmain, a top manufacturer of crypto mining equipment has already set up shop in Irkutsk, offering various services to crypto miners.
