Request for Crypto Mining Hardware Spikes in Russia as Prices Rise

Crypto Mining Hardware

In Russia, demand for crypto mining hardware is increasing while prices keep rising.

According to retail data, the market for cryptocurrency mining equipment in Russia has witnessed a lot of interest from buyers of both new and used machines. Demand for application-specific integrated circuit (ASIC) processors has exploded this year, but video cards have been in limited supply, causing prices to rise.

Miners in Russia are looking to boost their computing power.

According to the Russian business daily Kommersant, online sellers have witnessed a surge in demand for crypto mining machines, both new and used. On the Russian classifieds site searches for devices meant to mine Bitcoin (BTC), or ASICs, have grown 14 times year on year, despite a 13-fold increase in supply.

A mining unit costs an average of 117,900 rubles (almost $1,600). The most popular items were Chinese firm Microbt’s Whatsminer mining rigs, which saw a 23-fold increase in demand. At the same time, searches for Antminers made by Bitmain, a Beijing-based business, were 11 times higher than last year.

Sales of crypto mining items on the e-commerce platform climbed 13 times in terms of units and 14 times in terms of value in the first three quarters of this year, according to data from the first three quarters of this year.

After Moscow, Russia’s capital, and Saint Petersburg, Russia’s second-largest city, Krasnodar Krai, the Republic of Tatarstan, and Sverdlovsk Oblast have been the main destinations for the majority of the orders, according to the newspaper. Even though these areas do not have the lowest electricity bills in the country.

Due to a global shortage of microchips, graphics processing units (GPUs), which are used to mine Ethereum (ETH) and other altcoins, have been in short supply, driving up prices. According to Anton Fomin, a business analyst at Marvel-Distribution, GPU sales declined 15.8% year over year in the first ten months of 2021, despite the market growing by 129.6% in value. The following is taken from the report:

“Suppliers and retailers have been forced to raise the price of devices, but people are willing to buy at almost any price.”

The challenging scenario in the video card industry, according to Fomin, will continue as long as crypto farms generate a profit. The gap is unlikely to evaporate by the end of 2023, but the delivery time will be significantly reduced, from 48-50 weeks to 10-14 weeks, according to Kommersant.

With China’s government cracking down on cryptocurrency mining since this spring, energy-rich Russia has emerged as one of the top locations for bitcoin miners looking for a more welcoming environment. The Russian Federation has received the majority of the mining machines taken out of the People’s Republic during the miners’ exodus, according to data released by the Financial Times in November.

The Author

Samuel Adeshina

Samuel is a financial reporter whose interests include blockchain, market, business, insurance, and Crypto to provide relevant information to all interested.