Russian crypto-mining operator Bitriver will use power generated from associated gas provided by Gazprom Neft to mint digital coins. As part of the new agreement, the mining company will, in return, develop digital infrastructure at the Russian oil producer’s wells.
Crypto miner Bitriver will cooperate with Russian oil giant Gazprom Neft
Gazprom Neft, Russia’s third largest oil producer, will supply power to data centers operated by Bitriver, the country’s leading crypto-mining company. The electricity needed to produce the digital currency will be generated using associated petroleum gas, a type of natural gas found in oil deposits.
The arrangement is part of a memorandum of cooperation signed by the two companies during the St. Petersburg International Economic Forum, RBC Crypto reported, citing Bitriver representatives. The announcement came after Russian mining operators were recently placed under U.S. sanctions.
Pursuant to the agreement, the mining company will develop the digital infrastructure of Gazprom Neft’s oil fields and provide services dependent on computing hardware, the report detailed.
Although Gazprom Neft’s business model does not encompass digital currency, the oil giant is seeking a solution that would allow for the “beneficial use” of associated gas obtained during oil extraction.
The infrastructure needed to use associated gas for energy-intensive crypto asset mining has already been built by Gazprom Neft companies in three Russian regions.
Gazprom Neft is the oil subsidiary of Russian state-owned natural gas giant Gazprom. The first reports of the company offering bitcoin miners the opportunity to use surplus gas from oil drilling came out last January. The U.S. company also uses stranded gas to mint crypto.
Oil-rich Oman has announced plans to employ the associated gas to mine bitcoins, with the aim of reducing harmful emissions into the atmosphere where this gas is normally emitted or burned. The country purchased a $350 million stake in Crusoe Energy Systems Inc, a U.S. company that specializes in crypto mining with energy from excess fuel.
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