Russia’s Bitcoin Mining Growth in 2024

By early 2025, Russia’s Bitcoin mining capacity had topped 11 GW, though only 3 GW was reportedly used by legal miners.

Mining Sector Expansion

The Bitcoin (BTC) mining sector in Russia grew in 2024, with the number of mining farms increasing 7% to 136,600, according to Kommersant and data from MTS EnergyTool.

As of January 2025, total mining capacity in the country surpassed 11 GW. Moscow accounted for approximately 9% of the farms, while the surrounding Moscow region had 8%. Irkutsk emerged as the primary mining hotspot, hosting over 10% of the identified crypto mining farms.

Usage and Illegal Mining

Despite the increase in capacity, legal crypto miners in Russia only utilize 3 GW out of the total 11 GW available. While Russian authorities are attempting to transition underground miners into the legal framework, energy consumption issues persist, with many still operating outside the law.

Factors Driving Mining Activity

Russia has experienced heightened mining activity due to low electricity costs in certain regions. Irkutsk, in particular, is appealing to miners due to its inexpensive hydroelectric power. However, regulators continue to enforce measures against illegal mining operations that overload local grids.

Legislative Developments

In early August 2024, President Vladimir Putin signed new laws that officially legalized Bitcoin and digital asset mining. Under these regulations, citizens can mine Bitcoin as long as they remain within the government’s electricity cap. The Bank of Russia retains the authority to ban specific assets if they pose a risk to financial stability.

According to reports from crypto.news, the Russian power grid operator Rosseti incurred losses exceeding 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, amounting to over 600 million rubles. Novosibirsk faced losses of 400 million rubles, while Rosseti Center and Privolzhye lost around 120 million rubles.

Further Reading

• Russia to ban Bitcoin mining in key regions due to electricity deficit