Russia Set to Become the World’s Second-Largest Bitcoin Mining Hub

• Russia aims to reach second place in global Bitcoin mining capacity.

• Girya predicts 7GW expansion as energy-rich Siberia drives mining boom.

• Despite low registration, big investors and reforms boost mining outlook.

Russia is quickly emerging as a major player in the global Bitcoin mining industry. According to Vasily Girya, CEO of GIS Mining, the country could become the second-biggest hub of Bitcoin mining globally. Although the industry has been challenged by the recent restrictions, Girya believes that new investments by the large economic groups will increase expansion.

Russia Could Add 7GW Mining Capacity Within Three Years

During the speech at the St. Petersburg International Economic Forum (SPIEF), Girya expressed his positive attitude. According to him, the Russian mining industry has the potential to increase its capacity by 7 gigawatts (GW) within the period of the next three years. In case of that case, Russia has every chance to become the second country in terms of the number of Bitcoin hashrate after the United States.

In addition, Girya emphasized that the competition with the U.S. is going to increase even more; however, the energy superiority and development of infrastructures will aid Russia in its ascendancy. His comments were cited in TASS, the state-owned Russian media house. He also added that in the future, the large mining ability in this country will lure the big firms and investors.

But it is not without a problem. The policy on crypto mines that has been implemented by Russia has not produced the anticipated outcome yet. Recently, the government came up with regulations to incorporate those miners into the formal system. This notwithstanding, most mining businesses are not registered.

A report by TASS indicated that less than 30% of miners had registered with the Federal Tax Service (FTS). This gives an indication that most part of the industry is still operating in the periphery. This is making the government to miss tax revenue which would be generated in the sector and the sector lacks proper oversight.

Crypto-Friendly Reforms to Boost Russia Bitcoin Mining Industry

Still, Girya remains hopeful for the crypto mining in Russia. He mentioned that the expansion of Russia mining ecosystem has been fostered by a number of elements. To begin with, the market is being invaded by big financial and industrial combines. Second, the tendency to establish distributed self-generation facilities to run mining data centers is also emerging. Third, the laws that govern the trading of cryptocurrencies can be eased thus another boost to the industry.

The other reason why Russia experienced mining-boom is its richness in energy and in particular, Siberia. In September 2024, President Vladimir Putin made a public statement of Russia as a world leader in Bitcoin mining. Talking during the Eastern Economic Forum (EEF) Putin stated that the abundance of energy in Siberia has made this region perfectly positioned in being an optimal mining location.

He further disclosed that Russia mined 54,000 Bitcoins in 2023 which brings about more than half a billion dollars in state taxes. It was a record success and this showed the increasing power of this nation in the crypto space.

Despite facing some regulatory and structural challenges, Russia continues to grow its crypto mining sector. Its strong energy resources, especially in Siberia, give it a clear advantage. In addition, rising investments and smart strategies are helping the industry expand rapidly. As a result, Russia could soon become the second-largest Bitcoin mining hub in the world. This progress will further strengthen its role in the global digital finance space.