Russia’s Bitcoin mining industry witnessed substantial expansion in 2024, with mining farms increasing by 7% to 136,600 nationwide, according to a report by the Russian newspaper Kommersant.
Kommersant, citing data from MTS EnergyTool, stated that the country’s total mining capacity exceeded 11 GW by January 2025. The geographical distribution of mining operations shows Irkutsk leading with over 10% of the country’s mining farms, followed by Moscow at 9% and the Moscow region at 8%. Irkutsk’s prominence was attributed to its abundant and affordable hydroelectric power.
Despite this rapid expansion, legal crypto miners in Russia reportedly utilize only 3 GW of the country’s total 11 GW mining capacity. The government has made efforts to formally regulate the industry and integrate underground mining operations.In early August 2024, President Vladimir Putin signed legislation officially legalizing Bitcoin and digital asset mining. Under the new framework, citizens are permitted to mine Bitcoin as long as they comply with the government’s electricity cap.
However, unregistered miners continue to draw substantial amounts of electricity, escalating energy concerns. As a result, this growth has prompted regulatory crackdowns on illegal mining activities that place excessive strain on local power grids.
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Local power grid operator Rosseti reported losses exceeding 1.3 billion rubles in 2024 due to unauthorized crypto mining, where miners illegally tapped into the electricity. The North Caucasus region was the hardest hit, with Rosseti Severny Kavkaz reporting damages exceeding 600 million rubles. In Novosibirsk, losses reached 400 million rubles, while Rosseti Centre and Privolzhye recorded losses of around 120 million rubles.
The Russian government recently implemented a crypto mining ban in ten regions, effective from January 2025 through March 2031. The ban affects southern regions, including Dagestan and North Ossetia, as well as Donetsk and Lugansk. Siberian regions like Irkutsk and Buryatia will face seasonal restrictions during winter energy peaks.
Russia increased its regional mining restrictions
In August 2026, the Russian government banned cryptocurrency mining and participation in mining pools across Moscow, the Moscow region and parts of the Kursk region.
The restrictions took effect on August 15 and are scheduled to remain in place until December 31, 2032. Russia had already imposed mining restrictions in several energy-constrained regions, making the Moscow measure part of a broader policy rather than an isolated decision.
Moscow-region energy officials estimated that cryptocurrency mining accounts for roughly 1 GW of electricity consumption in the area’s power system. Officials have also warned that growing data-centre demand could put additional pressure on the grid as Bitcoin mining is one of the most electricity-intensive forms of computing. As mining operators deploy more machines, their ability to access cheap and reliable power becomes increasingly important to profitability.
What happened to Russia’s global mining position?
Russia remains one of the world’s largest Bitcoin-mining markets. Hashrate Index estimated that Russia accounted for about 16% of global Bitcoin hashrate in December 2024, putting it behind the United States.
The regional restrictions could push more activity toward regions with surplus electricity or encourage miners to build independent power sources. If Russian miners can relocate equipment efficiently, restrictions in individual regions may change the geography of the country’s mining industry without necessarily causing a comparable decline in its overall capacity. If electricity constraints spread to additional regions, however, the industry’s ability to return to its previous capacity levels could become more difficult.
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