Bitcoin mining sector expands as ASIC count surged 7% in 2024: report
By early 2025, Russia’s Bitcoin mining capacity had topped 11 GW, but only around 3 GW was reportedly used by legal miners.
Bitcoin (BTC) mining sector in Russia grew in 2024 as the number of mining farms rose 7% to 136,600, Russian newspaper Kommersant reports, citing data by MTS EnergyTool.
As of January 2025, total mining capacity in the country had crossed 11 GW. Moscow accounted for about 9% of the farms, while the surrounding Moscow region had 8%. Irkutsk remained the top mining hotspot, hosting over 10% of the identified crypto mining farms, the data shows.
Despite the growth, legal crypto miners in Russia only use 3 GW out of the available 11 GW, the report says. While Russian authorities have been working to bring underground crypto miners into the legal fold, energy consumption apparently remains a major issue, with many still operating off the books.
Russia has seen increased mining activity due to low electricity costs in certain regions. Irkutsk, in particular, attracts miners with its cheap 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 officially legalizing Bitcoin and digital asset mining. Under the new rules, citizens can mine Bitcoin as long as they stay within the government’s electricity cap, though the Bank of Russia still has the power to ban specific assets if they pose a risk to financial stability.
As crypto.news reported earlier, Russian power grid operator Rosseti lost over 1.3 billion rubles in 2024 due to illegal crypto mining, with miners tapping into electricity through unauthorized connections. The biggest losses hit the North Caucasus, where Rosseti Severny Kavkaz reported damages exceeding 600 million rubles. In Novosibirsk, losses reached 400 million rubles, while Rosseti Center and Privolzhye saw around 120 million rubles drained.
