BitRiver CEO Worth $230M, Russia Outpace US

According to a Bloomberg article, Igor Runets, the CEO of BitRiver, is valued at $230 million. The chief of crypto mining has stated that Russia’s expansion in the sector currently surpasses that of the United States.

The Bloomberg article asserted that Runets was “accumulating a fortune” due to President Vladimir Putin’s “U-turn” on crypto mining policies.

BitRiver’s CEO: Establishing New Data Centers

BitRiver may be Russia’s most significant industrial crypto mining entity, expanding rapidly. Like numerous Russian miners, it allocates most of its resources to Bitcoin (BTC) mining.

Bloomberg clarified that the company’s $230 million valuation was determined by the estimated company value and the estimated cost of its soon-to-be-completed data centers.

BitRiver anticipates the imminent deployment of 1 MW of crypto mining capacity, with data centers being constructed nationwide.

Runets disclosed to RBC that his organization had garnered the support of both domestic and international clients.

“We can see this as another confirmation of the thesis that Russia is catching up with the US in the crypto mining sphere, outpacing the United States in terms of growth. And in the years ahead, [Russia] may become the leader.”BitRiver CEO Igor Runets

An increase in the number of Russian crypto mining players?

The onset of war in Ukraine has resulted in the withdrawal of confident international crypto mining investors from Russia.

On September 1, industrial mining was officially recognized as a form of entrepreneurship, significantly stimulating the mining sector.

Russian crypto processors have suggested that this has increased investment. Numerous individuals anticipate that this will increase bank involvement in the industry.

Runets was also eager to emphasize that crypto mining “lays the groundwork for the advancement of the artificial intelligence industry.”

He also stated that crypto mining is “becoming a driving force for the development” of the Russian “digital economy.”

Mining industry representatives have previously asserted that their sector catalyzes IT growth.

Additionally, they have informed Moscow that they are assisting in developing emerging technology professionals. Additionally, they have informed ministers that they will permit the state to utilize their new data centers for nationwide IT initiatives, which could serve as an incentive for the government.

Runets Alleges That the West Is Paying Attention

Runets further stated that Western powers are now aware of the possibility that Russia could “emerge as a global leader in crypto mining.”

Additionally, he stated that mainstream Western media channels were currently “openly discussing this possibility.”

Meanwhile, specialists in the United States stated that Russia’s decision to legalize crypto mining was “a method to streamline international settlements under sanctions.”

Bloomberg reported that Runets earned an MBA from Stanford University in 2017 while concurrently constructing his organization’s inaugural data center for crypto mining in Bratsk.

Gazprom and other entities are developing new facilities

According to a media outlet, runets acquired knowledge about crypto mining during his tenure at Stanford.

The outlet elaborated that “some of BitRiver’s first clients were some of the CEO’s Stanford classmates.”

The corporation currently asserts that it operates 15 data centers with a combined capacity exceeding 500 MW.

The crypto mining industry has been the subject of interest from regional leaders and significant Russian businesses since September 1.

Gazprom, the oil and gas behemoth, is reportedly constructing a 500-rig BTC mining center in the historic city of Novgorod (also known as Veliky Novgorod).

Runets informed Pro Business last year that BitRiver was “the largest” crypto mining company in Eurasia and “one of the largest” mining firms worldwide.