- Russia is expected to lose its second-place ranking in global Bitcoin hashrate this year to China.
- High electricity prices above 5 RUB/kWh, a strong ruble, and outdated equipment are driving miners to relocate.
- This shift could reshape global Bitcoin hashrate concentration and slow Russia’s crypto industry growth.
Russia is expected to lose its position as the world’s second-largest Bitcoin (BTC) mining destination to China this year. Surging electricity prices above 5 rubles per kWh, a strong ruble, outdated equipment, and strict regulations and regional limits are forcing miners to relocate operations.
Russia is Set to Lose Its Bitcoin Hashrate Ranking
According to sources, Russia is expected to lose its position as the world’s second-largest Bitcoin mining hub, after the United States, to China, which currently ranks third, despite still holding the spot as of early 2026.
Russia still holds a significant share of the global Bitcoin hashrate, but its lead over China is shrinking rapidly. At the end of 2025, Russia controlled around 15.5% of the global mining market, while China stood at approximately 14%.
As of early 2026, Russia’s share is estimated at 13%-17%; however, its computing power has effectively stopped growing, allowing other nations, particularly China, to close the gap and expand.
High Electricity Prices Drive Miners to Relocate
Skyrocketing electricity costs are the primary reason Russian Bitcoin miners are relocating abroad. Grid power in Russia now exceeds 5 rubles ($0.06) per kWh, far above the global mining average of 2.5–3 rubles ($0.03–$0.04). Electricity makes up roughly 80% of total mining expenses, pushing many operations into unprofitability at current Bitcoin prices.
Additional pressures include a stronger Russian ruble, which reduces BTC revenue when converted to local currency, as well as regulatory restrictions. Although mining was legalized in 2024, 13 regions have imposed bans or limited subsidized power.
Furthermore, a new “take-or-pay” electricity scheme is approaching, while many miners operate outdated, inefficient equipment, further squeezing margins. Together, these pressures are pushing many miners to relocate abroad.
What’s the Impact on the Bitcoin Mining Sector?
Russia’s declining hashrate is triggering a significant geographic shift in global Bitcoin mining. As miners relocate mainly to China and other low-cost jurisdictions, global hashrate is becoming more concentrated among leading nations. This movement reduces Russia’s influence, strengthens competitors, and could reshape overall hashrate distribution.
In the longer term, Russia’s declining share of BTC mining is expected to slow the growth of its domestic crypto industry. Reduced mining activity means less investment in blockchain infrastructure, fewer related technology developments, and diminished economic spillovers from the sector. This trend underscores how sensitive the BTC mining industry is to energy pricing, regulatory stability, and hardware efficiency.
Overall, the ongoing shift signals a broader global realignment in BTC mining, where countries with cheaper energy and more stable policy environments are increasingly consolidating control over hashrate distribution. If current conditions persist, China is well-positioned to overtake Russia and reinforce its role as one of the dominant players in global BTC mining.
Related: Russia’s State Duma Advances Crypto Framework Bill
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