Russia is on observe to lose its place because the world’s second-largest Bitcoin mining vacation spot, after the US, to China, which presently occupies the third place.
Cheaper cryptocurrency, a stronger ruble and ever-rising vitality prices are the primary components, business observers say, as many Russian miners are actually trying to relocate.
Russia nonetheless maintains hashrate share however China is catching up
The Russian Federation remains to be in second place by way of Bitcoin hashrate share, however is anticipated to drop down the rankings this yr, in accordance with specialists within the area.
Its lead over the Individuals’s Republic is already narrowing and the development is prone to proceed on account of unfavorable financial situations for crypto mining, native press revealed.
Amongst them, the cheaper price of the primary cryptocurrency, the strengthening of the Russian ruble and the rise in electrical energy charges within the nation, Kommersant highlighted in an article on Tuesday.
Russia’s participation within the world mining market stood at round 15.5% on the finish of 2025, representatives of the commercial mining operator Prominer recalled in a dialog with the financial newspaper.
The nation managed to keep up its second place after the US, the undisputed chief, however the distinction between its share and China’s roughly 14% is more and more smaller.
In keeping with its Industrial Mining Affiliation, Russia stays in second place, as of early 2026, controlling between 13% and 17% of the Bitcoin hashrate, relying on the methodology used for the analysis.
Prominer analysts see these statistics as a sign that Russia’s computing energy has successfully stopped rising, permitting different nations to develop theirs.
Miners face rising prices and diminishing returns
Moscow regulated mining in 2024, making it Russia’s first totally authorized crypto exercise, with a view to reap the advantages of aggressive benefits akin to cool climate and ample vitality.
Nonetheless, it has since taken a collection of measures to restrict its growth, concentrating on areas that supply low-cost, usually sponsored electrical energy charges, together with regional bans and better tariffs.
Vitality provide issues play an essential function within the present scenario, Prominer emphasised, including that mining effectivity relies on manufacturing prices.
Whereas the worldwide common value of 1 kWh of electrical energy utilized in mining is within the vary of two.5 to three rubles ($0.03 – $0.04), electrical energy obtained from the grid in Russia exceeded 5 rubles ($0.06).
That is inflicting the migration of computing energy to jurisdictions that supply extra favorable working situations, the corporate commented, detailing:
“We’re already seeing a decline within the variety of small and medium buyers within the business as a result of decrease effectivity of mining gear, on account of components exterior their management.”
“Electrical energy is the largest expense in mining – about 80% of the price range,” Nikita Navrotsky, mining technical director at GBIG Mining, lately instructed RIA Novosti.
“At 6-7 rubles per kWh, it is just worthwhile if the $BTC The worth exceeds $80,000. Above 7 rubles per kWh, exploitation is now not worthwhile,” he estimated, additionally quoted by Prime.
With an put in capability of two.3 to 2.7 GW, mining presently accounts for round 1.5% of the nation’s complete electrical energy consumption, in accordance with the Ministry of Vitality in Moscow.
A bunch of issues plague Russia’s mining sector
Whereas vitality costs are rising amid a stagnant world hashrate, some analysts imagine the stagnation in Russia’s mining area is extra a results of a powerful ruble than the business’s declining attraction.
Mining bills, together with electrical energy payments and likewise hire, are paid in rubles, whereas revenue is generated in $BTC and transformed into Russian fiat cash on the present excessive change price.
And even when the worth of Bitcoin rises once more and the US greenback strengthens, the deliberate introduction of a take-or-pay fee plan for electrical energy equipped to miners will proceed to harm long-term investments.
Then there’s the {hardware} facet, as famous by Interhash CEO Alexander Lozben, a key issue for Russian miners who aren’t used to purchasing the most recent gear.
They’re now caught on outdated platforms which can be barely worthwhile and are contemplating transferring to different areas reasonably than increasing their coin minting websites in Russia.
