Atom Mining is scaling up in Russia

Founded two years ago by Belarusian GPU-based cryptocurrency mining equipment manufacturer AtomMining, Atom Mining LLC is scaling up in Russia. The company increased its authorized capital 2.3 times: from 20 million to 46 million rubles, changes were made to the Unified State Register of Legal Entities on June 7. The shares of the LLC participants remained the same: 80% for Dmitry Saksonov, 15% for Pavel Soiko and another 5% for Sergei Kovalev.

On the hh.ru job search website, the company posted information about plans to “actively scale” and increase “the number of crypto products produced.”

“The company’s main strategy is to create several b2c crypto startups and build isolated product teams within one structure,” the description says. It should be noted that LLC projects are international.

Business in Russia was a success for the company. The net profit of Atom Mining LLC for 2023 (the first full year of operation) amounted to 46.7 million rubles, revenue – 150.4 million rubles, as follows from the Unified State Register of Legal Entities.

The representative office was opened in March 2022, RB.RU writes. The company hopes to become one of the first equipment suppliers on the Russian market when this activity is legalized in the country. At that time, the founders were also Vladimr Zuenko (10%) and Alliance LLC (40%, equipment distributor), their shares were acquired by Saksonov (+40%), Kovalev and Soiko (+5% each) in the fall of the same year. Currently, the company is engaged in software development, fintech projects, Web3, a mobile application for cryptocurrency mining, and creating synergy between NFTs and marketplaces, according to its website.

Atom Mining did not respond to RB.RU’s request.

According to Boris Bogoutdinov, managing partner of the consulting firm 2B Dialog, the company increased its authorized capital at the expense of retained earnings.

Bogoutdinov adds that, despite the general “information hype” of the last five years about digitalization, mining activities are associated with high risks: on the one hand, the government is pushing for a significant increase in tariffs for energy consumption, on the other, fast-using equipment.

Bogoutdinov notes that by the end of 2023 the total revenue of mining companies in Russia amounted to about 20 billion rubles. The leader remains BitRiver, which has about 12 data centers with a capacity of 530 MW and plans to increase the number of sites with a capacity of more than 1 GW. Another major player, Intelion Data Systems, has a total capacity of 136 MW and plans to build new data centers with a capacity of 345 MW.

According to Artem Shvaika, CEO of Eclecs law firm, an increase in authorized capital may indicate plans to attract investors.

“In this case, it is most likely that the participants decided to increase the importance of their company by increasing the authorized capital to 40 million rubles. This may be due to plans to go public, sell the company or attract partners,” Artem Shvaika explained to RB.RU.

According to the lawyer, increasing the authorized capital of a company is mainly a formal procedure that does not impose significant obligations, but entails an increase in the responsibility of its participants within the limits of the contribution.

“The authorized capital is a guarantee of the fulfillment of the company’s obligations,” Shvaika said.

• Belarusian AtomMining was founded by a team of specialists with experience in the crypto industry since 2016. The organization started its development by assembling and selling GPU-based mining rigs. Later, the company created its own data center, now it has more than 3 thousand sq. m of area equipped with the necessary equipment for mining. We have established our own production line.
• “The legislation of the Republic of Belarus allows mining cryptocurrencies absolutely legally. That is why we opened a representative office of AtomMining in the Russian Federation, thereby giving Russian investors the opportunity to enter this business,” the company’s website says.
• A bill on the legalization of mining in the Russian Federation is already in the State Duma of the Russian Federation and may be adopted in the autumn session. According to the bill, Russian legal entities and individual entrepreneurs included in the register will be able to engage in mining. Individuals will be able to mine cryptocurrency without exceeding the limit on energy consumption.
• On June 13, deputy and one of the co-authors of the bill Anton Gorelkin reported that against the backdrop of new sanctions against the Russian financial sector, there are proposals to legalize cryptocurrencies for foreign trade payments, as Iran, which has almost half a century of experience in surviving under the economic pressure of Western countries, once did. Gorelin added that against the backdrop of increasing sanctions, it is necessary to speed up the consideration of the bill.