SBI Crypto, Japan’s largest online cryptocurrency brokerage has planned its exit from Russia’s crypto mining industry. Russia has become one of the most attractive destinations for crypto miners all across the globe. The country offers ideal climatic conditions and low-cost power that are perfect for crypto mining.
However, in the past few months, as the world witnessed the horrors of the Russia-Ukraine conflict, things took a U-turn for Russia. The United States has put sanctions on several Russian industries including the Bitcoin mining industry. Various multinational corporations including crypto miners packed their bags and left the country due to avoid heavy U.S. sanctions.
SBI Holdings is one of the biggest and oldest Japanese financial firms that entered the crypto mining space. However, it faced a massive pre-tax loss of $72 million or 9.7 billion yen in its crypto business during the second quarter of the year. Moreover, for the first time ever, the firm has also registered a net loss of 2.4 billion yen or $15.8 million.
This and the uncertain future of crypto mining have led to their decision of moving out of Russia’s crypto mining industry. According to the spokesperson of the firm, SBI stopped all its mining work in Russia as the war in Ukraine began. However, they still haven’t cut all ties with Siberia. He further added that before the withdrawal is completed, they will have to sell all of their mining equipment located in Siberia. The spokesperson also claimed that they have no other businesses in Russia.