Russia is about to lose its position as the world’s second-largest Bitcoin mining destination after the United States to China, which currently ranks third.
A weak cryptocurrency, a strong ruble and ever-increasing energy costs are key factors as many Russian miners are now considering relocating, industry insiders say.
Russia still maintains hashrate share, but China is catching up
According to experts in the field, the Russian Federation remains in second place in terms of share of Bitcoin hashrate, but is expected to drop in the ranking this year.
The gap with the People’s Republic has already narrowed, and local media revealed that this trend is likely to continue due to unfavorable economic conditions for cryptocurrency mining.
These include a decline in the price of major cryptocurrencies, a rise in the Russian ruble, and an increase in domestic electricity prices, Kommersant highlighted in an article on Tuesday.
Russia’s stake in the global mining market was approximately 15.5% at the end of 2025, representatives of mining operator Prominar recalled in a conversation with Keizai Daily.
It has managed to maintain its second place behind the undisputed leader, the United States, but the gap with China’s share of about 14% is narrowing.
As of early 2026, Russia remains in second place, controlling between 13% and 17% of Bitcoin’s hashrate, depending on the methodology used for valuation, according to the Industry and Mining Association.
Analysts at Prominar say these statistics indicate that growth in Russia’s computing power has effectively stopped, allowing other countries to expand their own.
Miners face rising costs and declining profits
To enjoy competitive advantages such as a cool climate and abundant energy, the Russian government regulated mining in 2024, making it Russia’s first fully legal cryptocurrency activity.
But the company has since taken a series of steps to limit its expansion, including regional bans and rate hikes, concentrating it in areas that offer low-cost, subsidized electricity rates.
Prominer stressed that energy supply issues play a major role in the current situation, adding that mining efficiency depends on production costs.
The average global price for 1 kWh of electricity used in mines ranges from 2.5 to 3 rubles ($0.03 to $0.04), while electricity supplied from the Russian grid costs more than 5 rubles ($0.06).
This is resulting in a shift of computing power to jurisdictions that offer more favorable operating conditions, the company said, elaborating:
“We are already witnessing a decline in the number of small and medium-sized investors in the industry due to reduced efficiency of mining equipment due to uncontrollable factors.”
“Electricity is the biggest expense in mining, about 80% of the budget,” Nikita Navrotsky, technical director of mining at GBIG Mining, recently told RIA Novosti.
“At 6-7 rubles per kWh, it is profitable only if: $BTC Prices are over $80,000. Above 7 rubles per kWh, the farm becomes unprofitable,” he estimated, also quoted by Prime.
With an installed capacity of 2.3 to 2.7 gigawatts, mining currently accounts for about 1.5% of the country’s total electricity consumption, according to the Energy Ministry in Moscow.
A mountain of problems confronting Russia’s mining sector
While energy prices are rising amid a global hashrate slump, some analysts believe the stagnation in Russia’s mining sector is more a result of a strong ruble than the industry’s declining attractiveness.
Mining costs such as electricity and rent are paid in rubles, and profits are earned in rubles. $BTC The money was then exchanged into Russian fiat currency at the current high exchange rate.
And even if the value of Bitcoin rises again and the US dollar strengthens, plans to introduce a “take-or-pay” payment system for electricity supplied to miners will still have a negative impact on long-term investment.
Then there is also the hardware aspect, which, as Interhash CEO Alexander Lozben pointed out, is an important factor for Russian miners who are not used to purchasing the latest equipment.
They are currently stuck with outdated rigs that offer little profit and are considering whether to move to other regions rather than expand their coin mints in Russia.
