Russia's Bitcoin (BTC) Mining Sector Grew in 2024, but Only 3 GW of Capacity Is Used Legally

Bitcoin (BTC) mining sector in Russia grew in 2024 as the number of mining farms rose 7% to 136600

Russia’s Bitcoin (BTC) mining capacity reached 11 GW by early 2025, but only 3 GW was used by legal miners, according to a report.

Bitcoin mining in Russia grew in 2024, with a 7% increase in mining farms, reaching 136,600, as reported by Russian newspaper Kommersant, citing data from MTS EnergyTool.

As of January 2025, the country's total mining capacity had surpassed 11 GW. According to the data, Moscow housed around 9% of the farms, while the Moscow region had 8%. Irkutsk remained the top mining hotspot, hosting over 10% of the identified crypto mining farms.

Despite the growth, the report indicates that legal crypto miners in Russia only utilized 3 GW out of the available 11 GW. While Russian authorities have been working to legalize underground crypto miners, energy consumption remains a significant issue, with many still operating illegally.

Due to lower electricity costs in certain regions, Russia has experienced increased mining activity. Irkutsk, in particular, attracts miners with its low-cost hydroelectric power. However, regulators continue to crack down on illegal mining operations that strain local grids.

In early August 2024, Russian President Vladimir Putin signed new laws that officially legalized Bitcoin and digital asset mining. According to the new regulations, citizens can mine Bitcoin as long as they stay within the government's electricity cap, although the Bank of Russia still has the authority to prohibit specific assets if they pose a risk to financial stability.

As previously reported by crypto.news, Rosseti, Russia's power grid operator, lost over 1.3 billion rubles (about $17.2 million) in 2024 due to illegal crypto mining, with miners accessing electricity through unauthorized connections. The North Caucasus suffered the greatest losses, with Rosseti Severny Kavkaz reporting damages exceeding 600 million rubles (about $7.9 million). In Novosibirsk, the losses amounted to 400 million rubles (about $5.3 million), while Rosseti Center and Privolzhye lost around 120 million rubles (about $1.6 million).