Bitriver, a cryptocurrency mining company, is teaming up with Russian oil giant Gazprom. Gazprom Neft is a Russian oil company.
Gazprom Neft, Russia’s third-biggest oil firm, will power data centers run by Bitriver, the nation’s main cryptocurrency mining firm. Associated petroleum gas, a kind of natural gas found near oil resources, will be used to create the power required to manufacture digital currency.
According to RBC Crypto, which cited a Bitriver spokesperson, the agreement is part of a memorandum of cooperation inked by the two firms at the St. Petersburg International Economic Forum. The news comes after the United States recently sanctioned the Russian mining company.
The mining company will create digital infrastructure at Gazprom Neft’s oil fields and supply services based on computer hardware, according to the deal, according to the article.
Although digital currencies are not part of Gazprom Neft’s business strategy, the oil giant is looking for ways to make useful use of the related gas collected during oil extraction.
The infrastructure required to use associated gas for energy-intensive crypto asset mining has already been created at Gazprom Neft companies in three Russian areas.
Gazprom Neft is the Russian state-controlled natural gas giant Gazprom’s oil division. The firm was first reported to be providing bitcoin miners the ability to utilize excess gas from oil drilling in January of last year. Companies in the United States have also used stranded gas to create a cryptocurrency.
Oil-rich Oman has revealed plans to mine bitcoin using related gas, to lower harmful environmental emissions, where this gas is often vented or burnt. The government purchased a $350-million investment in Crusoe Energy Systems Inc. in the United States, specializing in cryptocurrency mining using surplus fuel energy.