Popular crypto brokerage platform SBI Holdings has announced that it will leave Russia’s crypto mining sector in the coming weeks. According to the official statement from the firm, the decision was made as a result of so many issues that those at the top have thought about carefully. One of the issues mentioned in the statement was the ongoing tussle between Russia and Ukraine. Asides from that, there has been a major dwindle in mining revenue in the last few months.
SBI Holdings blames Russia/Ukraine conflict
According to the statement from SBI Holdings, it will now commence plans to put its mining equipment on sale before exiting the country. Russia has been one of the most preferred destinations for miners over the years. This results from several factors such as cheap electricity and suitable climates that put the country ahead of others. Another reason that placed the country ahead in the category was China’s decision to abolish mining across its borders early last year.
Russia is gradually becoming less profitable for mining due to the sanctions that have been leveled on the country. These sanctions have affected both mining rewards and the digital asset market. One of the few data centers involved in mining in Russia, Bitriver was sanctioned by the US in a ploy to get Russia to surrender.
More companies will leave Russia
Aside from Bitriver, another mining company, Compass Mining, has also been moving to leave the country to evade sanctions from the west. According to a spokesperson from SBI Holdings, the issue in Ukraine has put a strain on mining proceeds, and the general market downturn has not made the issue any easier on mining companies. A top company executive noted that the next move is to find ways to get rid of their equipment before leaving the country. SBI Holdings has been in the crypto space for a while compared to most companies.
However, a negative turn of events in its financials has seen the company planning a retreat before the end of the year. The company recently announced a halt on its mining services inside Ukraine but has not communicated to the media when it plans to leave the country for good. News from Japan mentioned that there has been pressure on companies from the country to leave Russia. With electricity costs on the rise, there might be more mining companies set to dump the once rich mining capital of the world.
Source: https://www.cryptopolitan.com/sbi-holding-halt-mining-operations-in-russia/