Russia’s BitRiver and RDIF Partner for BRICS-Wide Mining Initiative

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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October 23, 2024 10:30 EDT

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Russia is pursuing expanding its global computing power and dominating the cryptocurrency mining sector. On October 18, 2024, at the BRICS Business Forum held in Moscow, Russia’s largest data center operator, BitRiver, and the Russian Direct Investment Fund (RDIF) unveiled a strategic partnership.

The collaboration is set to launch mining and artificial intelligence (AI) computing facilities across BRICS nations.

With BitRiver already operating 21 data centers across Russia and ten more under construction, the company has become a key player in energy-intensive computing.

BitRiver and RDIF’s joint venture aims to bridge this gap by building state-of-the-art data centers for cryptocurrency mining and AI workloads.

Russia Expanding BRICS Mining Infrastructure: What Does it Mean for Crypto?

The BRICS alliance—consisting of Brazil, Russia, India, China, and South Africa, with recent additions including Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE—represents over 40% of the world’s population and a quarter of the global economy.

The partnership between BitRiver and RDIF is a critical step toward developing sovereign computing infrastructure that can reduce reliance on Western technology providers.

BitRiver CEO Igor Runets said this initiative would drive economic growth, bolster Russia’s AI and digital economy, and create skilled jobs nationwide.

Runets explained:

“Mining is not just the foundation for the digital economy. If Russia catches up with the United States in such a fundamental branch as mining, it means our country cannot be ignored.”

Runets added that this effort would enhance liquidity in cross-border settlements with BRICS partners while laying the groundwork for future AI projects.

Kirill Dmitriev, CEO of RDIF, shared similar sentiments, pinpointing the importance of AI and computing infrastructure for BRICS nations.

“Joint use of high-tech infrastructure will allow members to reduce costs, cut foreign technology dependence, and control critical data.”

The vision for BRICS countries is clear: create a self-sufficient, technologically advanced ecosystem where data sovereignty and independent AI development flourish.

Russia’s Regulatory Environment and Mining Expansion

This partnership’s timing aligns with Russia’s recently implemented cryptocurrency mining regulation law, passed in August 2024.

This law set the stage for large-scale industrial mining by establishing clear operation guidelines.

Miners and data center operators must now register in government databases, adhere to energy consumption limits, and report their activities.

Additionally, the law allows Russian-mined cryptocurrency to be used for international settlements.

BitRiver, which operates under these new regulations, is capitalizing on Russia’s push to become the world’s second-largest cryptocurrency mining market.

The company complies with the legal framework, which sets boundaries on energy consumption, transparency, and operational practices to ensure a secure and efficient mining ecosystem.

This expansion across BRICS countries is part of a broader movement to build alternative systems that minimize reliance on Western technology.

In addition to creating an independent BRICS payment system, Russia has been taking steps to develop its digital assets infrastructure.

In 2022, Russian banks, led by Sberbank, launched various digital asset initiatives, further aligning with BRICS’ goal of financial independence from Western institutions.

The partnership between BitRiver and RDIF clearly indicates the increasing role of BRICS nations in the global cryptocurrency and blockchain space.

According to blockchain.com, Bitcoin’s total hash rate—a measure of computing power dedicated to mining—reached 723.63M TH/s in October 2024, a 55% increase from the previous year.

This surge in hash rate shows the growing importance of institutional mining infrastructure, such as the one BitRiver and RDIF aim to establish.

With greater mining and data processing capacity, BRICS countries could see increased liquidity and economic growth as cryptocurrency adoption rises globally.