Putin’s Advisor Plans $100 Million ICO for Bitcoin Mining Farm in Russia

Putin’s Advisor Plans $100 Million ICO for Bitcoin Mining Farm in Russia

At a time in which Russia prepares to legalize Initial Coin Offerings (ICOs), a company co-owned by Russian President Vladimir Putin’s internet ombudsman Dmitry Marinichev reportedly plans on raising as much as $100 million through an ICO, in order to help Russian entrepreneurs challenge China’s bitcoin mining supremacy.

The company, Russian Miner Coin (RMC) is going to issue tokens in exchange for Bitcoin and Ethereum, so as to use the funds to build mining infrastructure in Russia. RMC token holders will have the rights to 18% of the revenue generated by the company’s mining equipment, according to Bloomberg.

Per Dmitry Marinichev, RMC plans on using semiconductor chips designed in Russia, designed to be used in satellites, to minimize power consumptions in cryptocurrency mining operations. Putin’s internet advisor even added that Russia has the potential to be a dominant player in the cryptocurrency mining industry, stating:

“Russia has the potential to reach up to 30 percent share in global cryptocurrency mining in the future.”

According to Bloomberg, Russia has 20 gigawatts of excess power capacity, which makes consumer electricity prices as low as 1.3 cents (80 kopeks) per kilowatt hour, reportedly less than in China. This surplus would give Russia an edge over China, as one of the biggest costs associated with bitcoin mining is power consumption.

Bitcoin mining is an energy intensive process that generates new tokens and adds new transactions to the blockchain. Currently, miners get a 12.5 BTC (about $54,000) reward for discovering a block. Additionally, the miners are awarded fees users paid in transactions as an incentive.

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