Russia’s crypto mining capacity second only to U.S.

Judging by the first quarter of 2023, Russia is now second only to the U.S. in terms of its crypto mining capacity. The Russian business publication Kommersant reported the market change, citing the data center operator BitRiver.

Russia’s total capacity involved in mining has reached 1 GW. By contrast, the U.S. has 3–4 GW in capacities dedicated to mining.

The top 10 global crypto producers include the Gulf States (700 MW), Canada (400 MW), Malaysia (300 MW), Argentina (135 MW), Iceland (120 MW), Paraguay (100–125 MW), Kazakhstan (100 MW), and Ireland (90 MW).

According to Kommersant, Russia was previously third among the countries in this global market. In 2021, it was behind the U.S. and Kazakhstan; a year earlier, the U.S. and China were the two global leaders. BitRiver attributes Kazakhstan’s and China’s decreased market shares to their evolving state regulation.

BitRiver CEO Igor Runets notes that the U.S. cryptocurrency market has been dampened by the rising energy prices and taxation disincentives.

Russia’s mining industry may also be affected by future legislation. At the moment, a bill on crypto mining regulation awaits consideration in the State Duma.