Over the past year, bitcoin 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.
Russia Increased Its Bitcoin Mining Capacity Up to 500 MW.
The total capacity of Russian mining farms will have grown to 500 MW by the end of 2022, according to Bitcoin.com. The beginning of 2023 is associated with a gradual market recovery against the backdrop of an increase in cryptocurrency rates. However, the growth of bitcoin 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 bitcoin 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.
Despite the Uncertainty of Crypto Mining Legislative, Russia Is an Attractive Destination for Bitcoin-Crypto Mining
Russia is an attractive destination for miners due to its 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, Bitriver 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 bitcoin mining at the legislative level.