Sanctioned BitRiver sees Russia poised to surpass US in Bitcoin mining by 2027 with Kremlin’s support

Sanctioned crypto mining company BitRiver suggests that Russia could soon surpass the US in mining due to favorable regulations.

As US presidential candidates increasingly emphasize the importance of blockchain and crypto mining leadership, certified crypto mining company BitRiver is optimistic about Russia’s potential to overtake the US in Bitcoin (BTC) mining by 2027.

In an interview with state-owned news agency Prime, BitRiver CEO Igor Runets noted recent regulatory developments that strengthen Russia’s position in the crypto sector.

In early August, Russian President Vladimir Putin legalized crypto mining by signing new laws exempting low-energy mining activities from restrictions. According to Runets, this law further solidifies Russia’s position in the industry by allowing citizens using energy-efficient hardware to mine Bitcoin legally.

“The latest legislation supporting mining in Russia has further strengthened our country’s position in this field.”

Igor Runets

BitRiver CEO claims Russia’s crypto mining growth rate has caught up with the US in the past year, narrowing the gap in absolute numbers. According to their calculations, Bitcoin mining in Russia currently consumes over 2.5 GW of energy, compared to over 7 GW in the US.

Runets emphasized that the evolving regulatory environment is encouraging oil and gas companies to re-evaluate their strategies and encouraging cooperation with Russian crypto miners. He expects that the effective use of associated oil gas through data centers for mining will provide a significant growth stimulus and that Russia will overtake the United States in the crypto environment in the next two to three years.

In April 2022, the US government added BitRiver and several of its subsidiaries to its sanctions list for operating in the technology sector of the Russian economy, in an attempt to isolate the country from the global financial system. The US Treasury noted at the time that crypto mining companies were helping Russia monetize its natural resources, noting that Russia had a “comparative advantage in crypto mining due to its energy resources and cold climate.”