According to recent insights from Cointelegraph, the founder of Digital Mining Solutions, Nico Smid, has disclosed that Russia is set to establish significant Bitcoin mining and artificial intelligence computing facilities within BRICS nations. This initiative may serve as a catalyst for other countries to harness their underutilized energy resources for Bitcoin mining activities. Collaborating with the data center operator BitRiver, the Russian sovereign wealth fund aims to strategically bolster mining capabilities across BRICS, which includes not only Brazil, Russia, India, China, and South Africa but also recent additions such as Egypt and Iran.
Notably, some BRICS members, including Argentina and the United Arab Emirates, are already leveraging state assets for Bitcoin mining. Alen Makhmetov, founder of Hashlabs Mining, emphasizes that these initiatives may represent a concerted effort by Russia to enhance its geopolitical standing amid limited IT infrastructure in the region. Following the anticipated lifting of its Bitcoin mining ban on November 1, Russia will impose several conditions, including mandatory registration with the Russian Federal Tax Registry. Despite the potential benefits, experts caution that challenges such as soaring electricity costs and a depreciating ruble could complicate Russia’s ambitions in the cryptocurrency space.