Japanese online broker SBI will stop crypto mining in Russia
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The largest online broker in Japan, SBI Holdings, has announced the cessation of cryptocurrency mining activities in Russia. This was announced by a representative of the company, answering questions Bloomberg. According to him, the events in Ukraine “created uncertainty about the prospects for the mining business in Siberia, and the collapse of the global cryptocurrency market made token mining less profitable.”
The interlocutor of the agency also noted that shortly after February 24, SBI suspended work in Russia, but now it is going to sell equipment and completely stop mining here, but the exact timing of this has not yet been determined. Due to the suspension of mining in Russia, the company’s cryptocurrency division ended the second quarter with a loss of ¥9.7 billion ($72 million).
Russia has been one of the hot spots for crypto mining in recent years thanks to cheap electricity. At the same time, by data Center for Alternative Finance at Cambridge University, already in the period from August 2021 to January 2022, Russia’s share in mining decreased from 11.23% to 4.66%. According to experts, this is due to the fact that the miners were repelled by possible political risks and the negative attitude of the Central Bank of Russia towards mining. Now the risks for them have increased even more. In April, US authorities imposed sanctions on the Swiss mining company BitRiver because of its activities in Russia. After that, some companies, including the American Compass Mining, began to decide to leave Russia in order not to fall under sanctions.
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