Key Points
- By 2025, Russia’s Bitcoin mining capacity reached 11 GW, with only 3 GW used by legal miners.
- Despite the growth, illegal mining and high energy consumption continue to be significant issues in Russia.
In the early stages of 2025, Russia’s Bitcoin mining capacity had escalated to 11 GW. However, only approximately 3 GW was being utilized by lawful miners.
Bitcoin Mining in Russia
The Bitcoin mining sector in Russia experienced growth in 2024 as the quantity of mining farms increased by 7% to 136,600, according to a report by Russian newspaper Kommersant. By January 2025, the total mining capacity in the country had surpassed 11 GW. Moscow was home to about 9% of the farms, while the surrounding Moscow region held 8%. Irkutsk remained the most significant mining hotspot, hosting over 10% of the identified crypto mining farms.
Despite the sector’s growth, legal crypto miners in Russia only utilize 3 GW out of the available 11 GW. Russian authorities have been making efforts to bring underground crypto miners into the legal domain, but energy consumption continues to be a major issue, with many miners still operating unofficially.
Increased Mining Activity and Regulation
Russia has witnessed an upsurge in mining activity due to low electricity costs in certain regions. In particular, Irkutsk attracts miners with its affordable hydroelectric power. However, regulators persist in clamping down on illegal mining operations that put a strain on local grids.
In early August 2024, Russian President Vladimir Putin enacted new laws officially legalizing Bitcoin and digital asset mining. Under these new regulations, citizens can mine Bitcoin as long as they adhere to the government’s electricity cap. However, the Bank of Russia retains the authority to prohibit specific assets if they pose a risk to financial stability.
Russian power grid operator Rosseti reportedly lost over 1.3 billion rubles in 2024 due to illegal crypto mining, with miners tapping into electricity through unauthorized connections. The most significant losses were reported in the North Caucasus, where Rosseti Severny Kavkaz reported damages exceeding 600 million rubles. In Novosibirsk, losses amounted to 400 million rubles, while Rosseti Center and Privolzhye saw around 120 million rubles drained.