Latest Mining Power Grows in Russia

Over the past year, mining capacities in the Russian Federation have grown, despite sanctions and a decline in the crypto market. The main growth factors were the low cost of equipment and increased demand from Russians.

The total capacity of Russian mining farms increased to 500 MW by the end of 2022, according to The beginning of 2023 is associated with a gradual recovery of the market against the backdrop of an increase in cryptocurrency rates, however, the growth of mining is hampered by an increase in electricity tariffs and taxes.

The market leader is Bitriver, which has more than 300 MW of total power for blockchain computing.. The capacity of farms managed by the Ural Mining Company (UMC) is 88 MW. Bitcluster has three farms of 60 MW each. EMCD manages data centers in several regions at once with a total capacity of 50 MW, and BWCUG manages one for 20 MW.

Russia is an attractive destination for miners due to relatively affordable electricity and cold climate. True, the political situation creates difficulties.

Western sanctions have different effects on market players. BWCUG faced difficulties caused by the reluctance of foreign clients to deal with a Russian partner, even in spite of lower costs. However, for example, Biriver was able to double the number of data centers and total capacity by implementing several projects in Russian regions, says Bitriver founder Igor Runets.

The market is under pressure from ambiguity with the regulation of mining at the legislative level.

Earlier, in one of the previous articles, we talked about how the mining and cryptocurrency industry works in Kazakhstan.