Key Points
- BitRiver believes Russia could overtake the U.S. in Bitcoin mining by 2027 due to favorable regulations.
- Recent laws legalizing crypto mining in Russia have increased the country’s standing in the crypto industry.
Crypto mining company BitRiver has indicated that Russia could soon surpass the United States in the field of Bitcoin mining. This prediction is based on the recent regulatory changes in Russia that favor the crypto mining industry.
Russia’s Crypto Mining Potential
BitRiver’s CEO, Igor Runets, shared his views in an interview with the state-owned news agency Prime. He pointed out that Russia’s President, Vladimir Putin, legalized crypto mining in early August. The new laws exempt low-energy mining operations from any restrictions, allowing citizens with energy-efficient rigs to legally mine Bitcoin.
Runets said, “The recent legislation supporting mining in Russia has further solidified our country’s position in this field.” He also stated that Russia’s growth rate in crypto mining has matched that of the U.S. over the past year. According to his calculations, Bitcoin mining in Russia currently uses over 2.5 GW of energy, while the U.S. uses more than 7 GW.
Future Growth of Crypto Mining in Russia
The evolving regulatory environment has led oil and gas companies to reevaluate their strategies and collaborate with Russian crypto miners. Runets anticipates that the efficient use of associated petroleum gas for mining in data centers will stimulate significant growth. He believes this could position Russia to surpass the U.S. in the crypto landscape within the next two to three years.
In April 2022, the U.S. government added BitRiver and several of its subsidiaries to its sanctions list. They were accused of operating in the technology sector of the Russian economy, which the U.S. Treasury claimed was an attempt to isolate Russia from the global financial system. The U.S. Treasury noted that crypto mining companies were helping Russia monetize its natural resources, highlighting that Russia had a “comparative advantage in crypto mining due to energy resources and a cold climate.”