Russia is about to lose its place because the world’s second-largest Bitcoin mining vacation spot after america to China, which at present ranks third.
A weak cryptocurrency, a powerful ruble and ever-increasing vitality prices are key components as many Russian miners are actually contemplating relocating, trade insiders say.
Russia nonetheless maintains hashrate share, however China is catching up
In keeping with consultants within the area, the Russian Federation stays in second place when it comes to share of Bitcoin hashrate, however is predicted to drop within the rating this yr.
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 situations for cryptocurrency mining.
These embrace a decline within the worth 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 world mining market was roughly 15.5% on the finish of 2025, representatives of mining operator Prominar recalled in a dialog with Keizai Every day.
It has managed to keep up its second place behind the undisputed chief, america, 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 development in Russia’s computing energy has successfully stopped, permitting different international locations to increase their very own.
Miners face rising prices and declining income
To take pleasure in aggressive benefits equivalent to a cool local weather and considerable vitality, the Russian authorities regulated mining in 2024, making it Russia’s first totally authorized cryptocurrency exercise.
However the firm has since taken a collection of steps to restrict its enlargement, together with regional bans and price hikes, concentrating it in areas that provide low-cost, sponsored electrical energy charges.
Prominer harassed that vitality provide points play a serious position within the present scenario, including that mining effectivity relies on manufacturing prices.
The typical world worth 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 situations, the corporate mentioned, elaborating:
“We’re already witnessing a decline within the variety of small and medium-sized traders within the trade attributable to lowered effectivity of mining tools attributable to uncontrollable components.”
“Electrical energy is the largest expense in mining, about 80% of the funds,” Nikita Navrotsky, technical director of mining at GBIG Mining, not too long ago advised 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 present accounts for about 1.5% of the nation’s whole electrical energy consumption, in response to the Vitality Ministry in Moscow.
A mountain of issues confronting Russia’s mining sector
Whereas vitality costs are rising amid a world hashrate hunch, some analysts consider the stagnation in Russia’s mining sector is extra a results of a powerful ruble than the trade’s declining attractiveness.
Mining prices equivalent to electrical energy and lease are paid in rubles, and income are earned in rubles. $BTC The cash was then exchanged into Russian fiat forex 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” fee system for electrical energy provided to miners will nonetheless have a detrimental impression on long-term funding.
Then there may be additionally the {hardware} facet, which, as Interhash CEO Alexander Lozben identified, is a vital issue for Russian miners who usually are not used to buying the newest tools.
They’re at present caught with outdated rigs that provide little revenue and are contemplating whether or not to maneuver to different areas somewhat than increase their coin mints in Russia.
