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A report published on February 21 revealed that Russia’s Bitcoin mining industry grew by 7% in 2024, with mining farms totaling 136,600 units.
Despite this growth, the sector continues to face significant challenges, particularly concerning energy consumption.
Unregulated mining activities remain prevalent, worsening energy shortages and complicating regulatory oversight.
While the government has implemented measures to limit unlawful mining practices, numerous operations remain unregistered, putting additional strain on the nation’s power grid.
Russia’s Bitcoin Mining Capacity Hits 11 GW Amid Progress and Obstacles
A report from the Russian newspaper Kommersant identifies Irkutsk as the primary center for Bitcoin mining, representing over 10% of registered farms.
Moscow and its nearby regions collectively account for about 17%, while Bashkiria and Samara continue to be significant mining areas.
Russian Bitcoin mining farms together hold a capacity of 11 GW, though only 3 GW is utilized by legally registered miners.
For perspective, one gigawatt is equivalent to one billion watts, illustrating the enormous energy demand of the industry.
The gap between registered and unregistered miners highlights the difficulty of integrating the sector fully into the legitimate energy framework.
Illegal Bitcoin mining has incurred a financial impact, with Russia’s energy grid company Rosseti reporting losses exceeding 1.3 billion rubles ($14.2 million) in 2024.
Russia’s energy grid faced a $14M loss due to illegal #CryptoMining in 2024. Authorities are cracking down on unauthorized operations, enacting bans & stricter regulations. #Blockchain #Russia https://t.co/DDxLOdJIVE
— Cryptonews.com (@cryptonews) February 18, 2025
The North Caucasus experienced the highest losses, with Rosseti Severny Kavkaz reporting damages exceeding 600 million rubles ($6.5 million).
In Novosibirsk, losses amounted to 400 million rubles ($4.4 million), while Rosseti Center and Privolzhye noted damages of 120 million rubles.
The company confirmed that 130 instances of unauthorized electricity use were detected and shut down, leading to over 40 criminal cases under Russian law.
To address the issue, the Russian government has introduced new regulations limiting Bitcoin mining activities in specific regions.
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A recent government decree has imposed a complete ban on Bitcoin mining in 11 regions, effective January 2025.
Furthermore, certain areas in Buryatia, the Irkutsk region, and Zabaikalsky Krai have been restricted from mining activities during the autumn-winter period when energy demand peaks.
In addition to regional bans, Russia’s Energy Ministry has suggested a national registry to monitor crypto mining rigs and related hardware.
Russian Bitcoin miners are concerned that a new government registry may expose them to sanctions if data leaks occur. Lawmaker Anton Gorelkin warns of geopolitical risks, while officials emphasize security. #CryptoRegulation #BitcoinMining https://t.co/Zj3uCm6nIG
— Cryptonews.com (@cryptonews) February 7, 2025
Russian Bitcoin miners are concerned that a new government registry may expose them to sanctions if data leaks occur. Lawmaker Anton Gorelkin warns of geopolitical risks, while officials emphasize security. #CryptoRegulation #BitcoinMining https://t.co/Zj3uCm6nIGThe ministry believes that such a registry will enhance oversight, reduce energy losses, and integrate more Bitcoin mining operations into the legitimate framework.
Authorities aim to balance the sector’s growth with energy sustainability, but the success of these policies will depend on enforcement and adherence.
Russia Considers Dedicated Power Plants to Support Bitcoin Mining
Russia may soon take a significant step in regulating its burgeoning crypto mining industry by establishing dedicated power plants exclusively for Bitcoin miners.
Aisen Nikolaev, the head of the State Council Committee on Energy, proposed this idea, suggesting that the creation of dedicated power plants could help stabilize electricity supply while allowing regulated Bitcoin mining to persist.
Nikolaev noted that in certain areas, electricity consumption for mining had become excessive, exacerbating energy shortages and affecting overall supply quality.
If Russia proceeds with the establishment of dedicated power plants for Bitcoin mining, it could signify a pivotal moment for the sector, providing enhanced oversight and improved energy management while bolstering the country’s influence in the global crypto mining arena.
Meanwhile, Bitcoin continues to demonstrate strong upward momentum.
The Bitcoin price is currently trading at $98,716, up 1.54% in the last 24 hours. The cryptocurrency remains above the critical $98,000 mark, indicating solid buyer control.
$BTC formed a dump rally pattern.
Short-term bullish, expecting to see a retest around the price of $102,000 pic.twitter.com/e85bqM4c3H— Henry (@LordOfAlts) February 21, 2025
The rally is driven by several global factors, including improved U.S.-Russia diplomatic relations and a more lenient approach to crypto regulation by the U.S. Securities and Exchange Commission (SEC).
Additionally, the SEC’s recent approval of a yield-bearing stablecoin and the establishment of the Cyber and Emerging Technologies Unit to protect retail investors have further enhanced market optimism.
The post Russia’s Bitcoin Mining Sector Reports Growth as Mining Farms Increase by 7% in 2024: Report appeared first on Cryptonews.
