Russia holds 16% of the global hash rate: natural resources, low costs, and clear regulations drive the industry.
Russia is emerging as one of the major players in the global Bitcoin mining landscape. With abundant natural resources, competitive energy costs, favorable climate conditions, robust energy infrastructure, and a defined regulatory framework, the country is solidifying its position as the second-largest player in the industry, following the United States.
Hash rate and position in the global market
In 2023, Russia strengthened its position in Bitcoin mining, consuming 16 billion kilowatt-hours of electricity, which accounted for about 1.5% of the country’s total electricity consumption. According to Sergey Bezdelov, president of the Industrial Mining Association, Russian industrial players mined 54,000 BTC in 2023.
As of December 2024, data from the Hashrate Index estimates that Russia commands approximately 16% of the global hash rate.
Russia’s vast energy resources, particularly natural gas and hydropower, create significant opportunities for mining. Local companies have leveraged these resources, especially in Siberia, where the cold climate substantially reduces cooling costs for mining machines.
However, foreign companies face regulatory risks, compounded by ongoing international sanctions and geopolitical tensions. Additionally, Russia’s energy policy, which prioritizes domestic energy use, further complicates the landscape for external investors.
Companies operating in Russia
BitRiver leads the sector, managing a network of 15 data centers with a total capacity exceeding 533 megawatts. The company is in an expansion phase, planning 14 new centers with a combined capacity of over 1 GW and establishing strategic partnerships with energy giants like Gazprom Neft. According to BitRiver CEO Igor Runets, Russia could become the global leader in Bitcoin mining within 2–3 years.
Rosseti, the largest electricity grid operator in Russia, is also planning to develop mining-related initiatives, leveraging underutilized energy infrastructure. The company awaits necessary government approvals from Prime Minister Mikhail Mishustin to expand its operations further.
Another active company in Russia is BitCluster, co-founded by Vitaliy Borschenko. In addition to projects within Russia, the company inaugurated a 120 MW data center in Addis Ababa, Ethiopia, in July 2024. The facility spans 30,000 square meters and operates near the Kilinto high-voltage substation, using renewable energy from the Grand Ethiopian Renaissance Dam, Africa’s largest hydropower project. In 2024, BitCluster’s managed computing power reached 2.9 EH/s, representing 0.36% of the global hash rate.
Besides prominent players like BitRiver, Russia also hosts numerous medium- and small-sized mining operators, though quantifying their exact number is challenging.
According to the local media outlet Prime, demand for mining machines tripled in the last quarter of 2024 compared to the same period the previous year.
Energy sources used
Russia’s mining sector primarily relies on hydropower, especially in Siberian regions, where it offers low costs and renewable advantages. Companies effectively utilize excess capacity from existing hydroelectric plants. Depending on geographic location and resource availability, the energy mix also includes natural gas, coal, flared gas (a byproduct of oil extraction), and renewable sources such as wind and solar power.
Regulatory framework
In August 2024, Bitcoin mining was officially legalized in Russia by President Putin. The regulation, which came into effect on November 1, 2024, requires companies and individual entrepreneurs to register for mining activities. It also outlines the rights and obligations of operators, with projected annual tax revenues of approximately $2 billion.
However, there are certain restrictions, including regional bans in areas with energy shortages and a temporary ban from 2025 to 2031 in Dagestan, Ingushetia, Chechnya, and the self-proclaimed republics of Donetsk and Lugansk, as well as other partially occupied Ukrainian regions such as Zaporizhzhia and Kherson.
Under the new regulatory framework, the government has imposed a monthly energy consumption limit of 6,000 kilowatt–hours for unregistered miners, along with a 15% tax on profits generated from mined bitcoins.
