American bitcoin miner plans to sell $30m worth of equipment in Russia to avoid sanctions

Source: AdobeStock / amixstudio

US-based Bitcoin (BTC) and crypto mining company compass mining aims to sell $30 million worth of mining equipment currently stuck in Siberia to buyers in Russia to avoid potential US and EU sanctions.

Whit Gibbs, CEO of the Texas-based company, has told Bloomberg that the mining servers have a capacity of 12 megawatts and cannot be taken out of the country, adding that proceeds from the sale will be used to repay around 2,000 customers who own the devices.

“I understand the sanctions; In this case, the penalty for American miners is excessive,” Gibbs reportedly said, noting that while fund recovery is crucial, his clients must stop mining BTC.

Founded in 2020, Compass Mining also operates data centers hosting servers owned by their customers. The company benefited significantly from China’s exodus of bitcoin miners over the past year and aims to continue growing its business by adding 3,500 to 5,000 megawatts of capacity over the next two years, Gibbs said.

The move follows a recent decision by the US Treasury Department to sanction a Russian crypto mining company BitRiver. In a statement, the Treasury explained its decision by targeting Russia’s virtual currency mining industry to ensure “that no asset, no matter how complex, becomes a mechanism for mining.” [Vladimir] Putin regime to offset the impact of sanctions.”

However, BitRiver founder and CEO Igor Runets said that the sanctions are US interference in the crypto mining industry to “shift the global balance of power in favor of American companies.”

Runets added that the company “has never provided services to Russian government institutions and has not worked with clients already affected by Washington’s sanctions.”

____

Learn more:
– US sanctions Russian bitcoin miner BitRiver to prevent Russia from “monetizing its natural resources”.
– Sanctions against Russian bitcoin miners and escalating energy and food crises

– The US imposes sanctions on the Russian crypto exchange, the Russian central bank fears that crypto will replace the ruble
– The EU clarifies crypto-related sanctions against Russia and Belarus, but questions remain

– “Big Holes” Undermine Russia’s Sanctions – And It’s Not Crypto (Shhh! It’s Traditional Politics and Finance)
– It’s time to legalize and tax bitcoin mining in Russia, says Deputy Prime Minister, academic and think tank

Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers