BitRiver endeavors to develop the largest scale lowest cost crypto mining operations in the world. The power by mining is set to increase from around 3GW to at least 25GW by 2020. We believe the Siberia region in Russia is the optimal place to build this additional capacity given the region’s substantial production of inexpensive hydro power, cold climate, and inexpensive land and real estate.
Combining all these factors, we believe will result in a superior profitability as well as in a better protection from downwards movements of the cryptocurrency market and increasing difficulty of mining. We operate at the bottom of the cost curve which acts as a natural hedge with respect to the price of Bitcoin. Because of its low cost structure, BitRiver can remain profitable even if the price of Bitcoin were to fall 85% over two years.
Having the lowest cost structure will allow BitRiver to survive as the blockchain security data center industry matures and turns into a new utility. We will establish the first mining facility located in Siberia with a total capacity of up to 100MW of power. Our investors are some of the most sophisticated and reputable investors in the world.