Bloomberg has reported that Russia is moving to become a major Bitcoin mining center, openly challenging the current Chinese dominance of the industry. The effort is being led by Russian Miner Coin, which is co-owned by Russian President Vladimir Putin’s internet ombudsman, Dmitry Marinichev. To finance the move, the company is seeking $100 million in funding through an initial coin offering.
In a Moscow news conference, Marinichev revealed details of the RMC plan to ramp up Bitcoin mining throughout Russia. The strategy includes using semiconductor chips to reduce the amount of power used by mining computers to minimize costs. In addition, RMC intends to place those mining computers in private homes, where they will be able to benefit from the country’s low electricity rates.
The RMC ICO will provide investors the opportunity to purchase the company’s tokens using Bitcoin or ethereum. In addition to ownership of those tokens, investors will also be provided with an 18% interest in the company’s mining revenue. As much as $10 million of the ICO funding could be used to fund the company’s development of its new mining computer systems.
Russian Miner Coin has designs on as much as 30 percent of the world’s digital currency mining market, which would make the company a serious rival to China’s own mining industry. Some industry observers are concerned that increased Russian involvement in the sector will lead to stricter regulations that could negatively impact Bitcoin’s price.