A Russian company has launched an investment fund to finance crypto mining projects despite regulatory challenges and hostile stances from certain government bodies. According to Kommersant, a Russian business news source, Investors with a minimum of 300,000 rubles (around $4,000) can take part in the scheme, using the capital to purchase hardware and pay for related costs such as energy and operating expenses.
The fund is reportedly the first of its kind in Russia and has been backed by a number of prominent investors. It will operate as an open-ended investment fund, allowing new participants to join anytime.
Investors can expect returns from the fund’s activities in both cryptocurrencies and fiat money. The fund aims to generate returns from the mining of Bitcoin and other popular cryptocurrencies, as well as from investing in existing crypto projects.
The fund is also offering a number of additional services to investors, such as technical support for the installation and maintenance of the hardware, as well as consulting services on the cryptocurrency market.
Crypto adoption in Russia
Kommersant reported that the venture carries some risks, but industry experts are optimistic that it will receive approval from Russia’s central bank. Alexander Baryshnikov of BitRiver claims there has been a tremendous inflow of monetary investments in crypto mining projects from banks and businesses in the area, especially since other financial prospects have diminished.
Russia also offers excellent conditions for mining operations due to its favorable climates and low-priced energy sources. Moreover, as Western sanctions impact regular industries, digital assets could be seen as an alternative economic resource for the country.
It had been suggested that the Russian government was well on its way to legitimizing mining by introducing regulatory measures around it. However, according to a statement from the Russian Finance Ministry, this process seemingly stalled in January 2021.