Russia experienced a 7% increase in Bitcoin mining activity during 2024 when its mining farms hit 136,600 units total. As the industry expands it deals with important difficulties centered on power usage and government monitoring.

According to Kommersant Russian newspaper data Irkutsk has become the primary location for Bitcoin mining in Russia and its 1000 total facilities represent 10% of all identified farms. Together Moscow and the regions close by manage mining facilities that make up 17% of the total while Bashkiria and Samara supply more mining sites.

Russia’s Legal vs. Illegal Bitcoin Mining Capacity

Legally authorized Bitcoin mining operations in Russia use just three out of its total eleven gigawatts (GW) mining farm capacity. The high number of unlicensed mining farms creates power supply problems that weaken the national electricity system.

Bitcoin mining operations carried out without authorization have caused major financial problems. The Russian grid company Rosseti documented 1.3 billion ruble ($14.2 million) financial losses during 2024. Rosseti Severny Kavkaz faced the largest damages in the North Caucasus region at more than 600 million rubles ($6.5 million).

Novosibirsk recorded 400 million rubles ($4.4 million) in financial losses while Rosseti Center and Privolzhye suffered expenses totaling 120 million rubles ($1.3 million) in this power misuse situation. Law enforcement teams terminated 130 unauthorized mining setups and launched 40 criminal proceedings against energy misuse.

The Russian government took action by putting limits on Bitcoin mining operations across multiple geographical regions of the nation. Last December the government declared eleven areas as Bitcoin mining-free zones beginning January 2025. The Russian government limited electricity usage for Bitcoin mining during autumn and winter months in Buryatia and two other surrounding areas.

Russia Plans National Crypto Mining Registry

The Energy Ministry of Russia wants to track all crypto mining rigs and hardware by creating a national database. The organization targets enhanced monitoring systems to decrease power waste and facilitates official registration for Bitcoin mining operations nationwide.

Aisen Nikolaev, head of the State Council Commission on Energy, wants to build distinct power plants solely to mine Bitcoin. He wants to maintain controlled mining operations in special Electricity-producing plants to solve energy supply problems and support online Bitcoin mining. Russia may adopt a brand new way to manage its crypto mining operations under this system.

Despite recent government controls Bitcoin stays on its upward market path. At its current trading value of $98,716 the digital currency has showed a 1.54% growth in 24 hours. The price stays higher than $98,000 making buyers the dominant market force.

Bitcoin keeps growing because U.S.-Russia relations are improving and SEC has lightened up on rules while enabling stablecoin profits. The mining sector in Russia needs to manage its industry development while ensuring enough energy resources for the future. Future direction of this business sector will emerge from current events as additional protections and facilities are tested.