Russia is about to lose its place because the world's second-largest Bitcoin mining vacation spot after the US to China, which at the moment ranks third.
A weak cryptocurrency, a powerful ruble and ever-increasing power prices are key components as many Russian miners at the moment are contemplating relocating, trade insiders say.
Russia nonetheless maintains hashrate share, however China is catching up
In keeping with consultants within the discipline, the Russian Federation stays in second place by way of share of Bitcoin hashrate, however is anticipated to drop within the rating this 12 months.
The hole with the Folks's Republic has already narrowed, and native media revealed that this pattern is more likely to proceed attributable to unfavorable financial circumstances for cryptocurrency mining.
These embrace a decline within the value of main cryptocurrencies, an increase within the Russian ruble, and a rise in home electrical energy costs, Kommersant highlighted in an article on Tuesday.
Russia's stake within the international mining market was roughly 15.5% on the finish of 2025, representatives of mining operator Prominar recalled in a dialog with Keizai Each day.
It has managed to keep up its second place behind the undisputed chief, the US, however the hole with China's share of about 14% is narrowing.
As of early 2026, Russia stays in second place, controlling between 13% and 17% of Bitcoin's hashrate, relying on the methodology used for valuation, in response to the Trade and Mining Affiliation.
Analysts at Prominar say these statistics point out that progress in Russia's computing energy has successfully stopped, permitting different international locations to broaden their very own.
Miners face rising prices and declining earnings
To take pleasure in aggressive benefits corresponding to a cool local weather and plentiful power, the Russian authorities regulated mining in 2024, making it Russia's first totally authorized cryptocurrency exercise.
However the firm has since taken a sequence of steps to restrict its enlargement, together with regional bans and price hikes, concentrating on areas that provide low-cost, backed electrical energy charges.
Prominer pressured that power provide points play a serious function within the present scenario, including that mining effectivity is determined by manufacturing prices.
The typical international value for 1 kWh of electrical energy utilized in mines ranges from 2.5 to three rubles ($0.03 to $0.04), whereas electrical energy provided from the Russian grid prices greater than 5 rubles ($0.06).
That is leading to a shift of computing energy to jurisdictions that provide extra favorable working circumstances, the corporate mentioned, elaborating:
“We’re already witnessing a decline within the variety of small and medium-sized traders within the trade attributable to diminished effectivity of mining gear attributable to uncontrollable components.”
“Electrical energy is the largest expense in mining, about 80% of the finances,” Nikita Navrotsky, technical director of mining at GBIG Mining, just lately instructed RIA Novosti.
“At 6-7 rubles per kWh, it’s worthwhile provided that: $BTC Costs are over $80,000. Above 7 rubles per kWh, the farm turns into unprofitable,” he estimated, additionally quoted by Prime.
With an put in capability of two.3 to 2.7 gigawatts, mining at the moment accounts for about 1.5% of the nation's complete electrical energy consumption, in response to the Power Ministry in Moscow.
A mountain of issues confronting Russia's mining sector
Whereas power costs are rising amid a world hashrate stoop, some analysts imagine the stagnation in Russia's mining sector is extra a results of a powerful ruble than the trade's declining attractiveness.
Mining prices corresponding to electrical energy and lease are paid in rubles, and earnings are earned in rubles. $BTC The cash was then exchanged into Russian fiat foreign money on the present excessive change price.
And even when the worth of Bitcoin rises once more and the US greenback strengthens, plans to introduce a “take-or-pay” cost system for electrical energy provided to miners will nonetheless have a unfavorable affect on long-term funding.
Then there’s additionally the {hardware} facet, which, as Interhash CEO Alexander Lozben identified, is a crucial issue for Russian miners who will not be used to buying the most recent gear.
They’re at the moment caught with outdated rigs that provide little revenue and are contemplating whether or not to maneuver to different areas fairly than broaden their coin mints in Russia.
