Higher power costs, strong ruble cut Russia’s Bitcoin mining rank

Russia is losing ground as a top Bitcoin mining destination as higher power prices and a stronger ruble narrow its lead over China. Promminer estimated Russia’s share of the global Bitcoin hashrate at about 15.5% at the end of 2025, while China’s share was near 14%. The Industrial Mining Association put Russia’s stake between 13% and 17% in early 2026, depending on the method used. Hashrate refers to the computing power used to verify transactions and create new Bitcoin.

Industry participants cite three main economic pressures: rising electricity costs, a stronger ruble against the dollar and weaker Bitcoin prices. Mining revenue is earned in bitcoin and typically converted into rubles, so a stronger ruble reduces local returns when miners sell rewards. Moscow legalized crypto mining in 2024 but has since introduced measures that restrict expansion in low-cost regions, including regional bans, higher tariffs for large users and changes to subsidized rates.

Energy costs are a key factor. Promminer said the average global electricity price used in mining is about 2.5–3 rubles per kWh ($0.03–$0.04), while power from Russia’s grid has exceeded 5 rubles per kWh ($0.06). The Ministry of Energy reports installed mining capacity in Russia at roughly 2.3–2.7 gigawatts, equal to about 1.5% of national electricity consumption. Promminer noted, “We are already seeing a decline in the number of small and medium-sized investors in the industry due to the declining efficiency of mining equipment.”

Technical and contractual factors are affecting margins. Nikita Navrotsky, technical director of mining at GBIG Mining, estimated electricity accounts for about 80% of a miner’s operating budget. He estimated that at 6–7 rubles per kWh, operations are only profitable if bitcoin trades above $80,000 and that farms become unprofitable above 7 rubles per kWh. Authorities have proposed a take-or-pay electricity payment scheme for miners, which analysts say could discourage long-term projects.

Hardware age is another constraint. Alexander Lozben, chief executive of Interhash, observed that many Russian miners operate older rigs and are less accustomed to frequent upgrades. Those operators face lower efficiency and are weighing relocation rather than investing in new equipment in Russia.

Miners are responding by moving computing power to countries with lower electricity costs or more favorable regulatory terms. Industry sources say the outflow has hit small and medium-sized operators hardest, because they cannot absorb higher input costs or finance new hardware. Promminer analysts reported that Russia’s computing power has effectively stopped growing, allowing other countries to expand their share of the global hashrate. Promminer added that, under current conditions, China could overtake Russia for the second-largest share of Bitcoin mining during 2026.