A new report shows that Russia’s crypto mining capacity has grown since 2022, moving past the crypto winter and the country’s sanctions.
A survey of key operators pointed to a bigger interest from Russian customers and lower costs for mining systems as the main elements for pushing the trend.
At the end of last year, Russia’s total mining capacity went beyond 500 MW (megawatts), the Kommersant survey shows. At the start of 2023, Russia is poised to continue growing in the footsteps of a recovering crypto industry. However, its expansion could be cut short due to higher energy costs and mining taxes.
Bitriver is the company with the most activity, boasting 8 cryptocurrency mining systems and a combined output of 300 MW. Then, UMC (Ural Mining Company) create a power of 88 MW. Bitcluster has 3 crypto farms, generating 60 MW. EMCD, with 4 different mining sites, offers 50 MW, and BWCUG has just one crypto mining site, generating 20 MW.
Russia’s rich energy sources and cold climate allows it to become a suitable destination for mining. However, the war with Ukraine and its financial effects on its economy prevent Russia from tapping into its full potential and using crypto as a way to avoid financial sanctions.