Gazpromneft and BitRiver Team Up to Develop Cryptocurrency Mining Operations

Gazpromneft and Bitriver Team Up to Develop Cryptocurrency Mining Operations and boost crypto usage.

According to an agreement reached at the St. Petersburg International Economic Forum on Thursday, Russia’s Gazpromneft and BitRiver, a US-sanctioned bitcoin (BTC) mining hosting service, seek to establish crypto mining infrastructure at oil fields.

According to a statement supplied to CoinDesk by Gazpromneft, the company will provide energy to BitRiver’s data facilities. According to the statement, these will either be at new oil fields where the transportation system has yet to be established or at remote locations where transportation is too expensive.

gazpromneft,Bitriver
Photo Credit: GlobalsNews

Flared-gas mining has grown in popularity over the last year or so because it allows oil producers to profit from otherwise wasted methane gas. ExxonMobil (XOM) is apparently investigating this for some of its oil fields, and Abu Dhabi and Oman, two Middle Eastern oil exporters, have invested in Crusoe Energy, a pioneer in exploiting flared gas as a power source.

Since the company helps Russia “monetize its natural resources,” BitRiver was added to the US Treasury Department’s Office of Foreign Asset Control (OFAC) list of specially designated nationals on April 20. The regulations have been labeled unfair and anti-competitive by the firm, which has declared plans to sue the US government.

It is important to remember that Gazprom Neft is a subsidiary of Gazprom (which owns more than 95% of the company) and one of the top three Russian oil producers and refiners.

Gazprom Neft is involved in geological exploration and hydrocarbon production, oil refining, retail petroleum product sales on the domestic market through a large network of its own gas stations, and oil exportation to CIS nations and beyond.

The company has a strong resource base and is one of the world’s top ten largest public companies in terms of proven hydrocarbon reserves. The probable and proven reserves are projected to be 2.84 billion tons of oil equivalent, with proven hydrocarbon reserves totaling 1.56 billion tons. At current production rates, the company’s reserves will last 17 years.

BitRiver, on the other hand, serves institutional investors throughout the world with hosting services and complete solutions for large-scale bitcoin eco-mining, data management, blockchain, and artificial intelligence operations.

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BitRiver has over 200 full-time employees in three offices across Russia and full-time offices in China, Japan, the United Arab Emirates, South Korea, Switzerland, Germany, and the United States. BitRiver now operates as the largest hosting company that provides co-location services for bitcoin mining using only excess hydroelectric power, with the goal of powering the most promising innovation of today and the future through low-cost and sustainable energy.

BitRiver’s founder and CEO, Igor Runets, stated in a statement released on Thursday, “Over the next two years, BitRiver intends to implement projects to create its own data centers for power-intensive computing with power scaling up to 2 [gigawatts], including APG, which will additionally provide high and stable power consumption.”

Runets first became interested in cryptocurrency after graduation, with a background in computer science and electrical engineering, as well as an MBA from Stanford University. He founded BitRiver to mine cryptocurrency, and the company has since evolved to become one of the world’s largest in the field.

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