Russia's bitcoin mining industry continues to expand, increasing its capacity by 7% in 2024. New legislative approaches and energy challenges are key factors in this context.
Increase in Capacity and Mining Geography
According to Kommersant, the number of mining farms in Russia increased by 7%, with the total mining capacity exceeding 11 GW by early 2025. Irkutsk leads the country with over 10% of the mining farms, followed by Moscow and the Moscow region at 9% and 8%, respectively.
Legislative Changes and Market Impact
In August 2024, President Vladimir Putin signed legislation legalizing the mining of Bitcoin and digital assets. This allows citizens to legally mine Bitcoin, provided they comply with electricity caps. However, unregistered mining activities remain a concern, prompting increased regulatory actions.
Energy Consequences and Prohibitions
Despite legislative changes, unregistered miners continue to consume significant amounts of electricity, resulting in losses of over 1.3 billion rubles for power grid operator Rosseti. This has led to mining bans in 10 regions, including Dagestan and Irkutsk, from January 2025 to March 2031.
The expansion of Russia's bitcoin mining industry is accompanied by increased capacity and new legislative measures aimed at regulating and managing energy consumption. The future will depend on the ability of the government and the industry to adapt to new challenges.
