Cryptocurrency Mining Expansion in Russia
The cryptocurrency mining landscape in Russia is witnessing rapid expansion, according to recent findings from the media outlet RBC. In the fiscal year 2024, the nation’s leading mining entities, BitRiver and Intelion, collectively reaped an impressive $200 million in revenue. This highlights their commanding presence in the market, as the two firms account for over half of the country’s mining operations.
BitRiver’s Operations
BitRiver, for instance, reported a revenue of approximately RUB 10.286 billion (around $129 million) for the fiscal year 2024, utilizing 533 MW of electrical power across 15 data centers. They maintain an extensive portfolio, operating more than 175,000 mining rigs and providing B2B services. The company predominantly operates in Irkutsk Oblast, which is recognized as the premier Bitcoin mining region within Russia. However, this surge in mining activity has strained the local energy infrastructure.
To tackle this challenge, BitRiver is increasingly exploring alternative energy sources, with over 30 MW of its capacity derived from associated gas produced at oil drilling sites, which is funneled into turbine generators.
Intelion’s Impact
On the other hand, Intelion has reported revenues of around RUB 6.218 billion (approximately $78 million), drawing 298 MW of energy. Notably, the company has established data centers in less conventional locations such as Tula, Nizhny Novgorod, Kemerovo, Samara, Murmansk, and Khakassia. Their strategic partnerships with nuclear energy suppliers, including Rosenergoatom, have facilitated the establishment of facilities like the one near the Kalinin Nuclear Power Plant in Tver. In addition, Intelion is expanding its gas generation capabilities, focusing on the provision of mining hardware for enterprises that have surplus energy capacity.
Rise of Smaller Players
The comprehensive report by RBC also highlighted the rising fortunes of smaller players in the sector. Third-place contender Promminer achieved notable success with revenues of RUB 4.761 billion ($59.8 million) from a capacity of 90 MW, specializing in mobile data centers that can be relocated as necessary. This agile approach has attracted attention from banks and leasing firms interested in supporting Promminer’s endeavors. Earlier this year, they inaugurated a new data center in Voronezh.
The report identifies nine out of the top ten miners by revenue as having experienced growth, with Promminer’s flexibility serving as a key differentiator.
Industry Insights
The insights also listed firms such as Location (80 MW), R7miner (33 MW), Stella (120 MW), Mining Cluster (70 MW), CryptoReactor (75 MW), GIS Mining (53 MW), and BitCluster (80 MW), with the latter reportedly working on developing mining infrastructure in Ethiopia and Paraguay.
Sergey Bezdelov, Director of the Industrial Mining Association, emphasized that Russia currently ranks second globally for overall mining output and holds the top position in growth rates, signaling a burgeoning industry set to play a pivotal role in the global cryptocurrency mining arena.
