Russia is reportedly the second-largest Bitcoin mining hub behind U.S.
- Russia has reportedly become the world’s second-largest Bitcoin mining hub with a capacity of 1 gigawatt.
- The shift in market share has been attributed to mining restrictions in Kazakhstan and China.
A shift in the market share of Bitcoin mining hubs around the world seems to have worked out well in favor of Russia.
The Russian Federation has reportedly become the world’s second-largest Bitcoin mining hub.
Russia’s expanding market share has been attributed to a shortage of electricity last year in China, which is a major rival in this space.
Kazakhstan’s crackdown on mining activities has also paved the way for Russia to claim second place.
Regulatory uncertainty in the U.S. may redistribute BTC mining market
According to a report by Russia’s Kommersant, local Bitcoin mining giant BitRiver brought attention to the country’s latest achievement in the BTC mining industry.
BitRiver, which offers hosting services for mining operations, stated that Russia’s Bitcoin mining capacity has reached 1 gigawatt (GW).
The statistics are reportedly based on data gathered between January and March 2023. The capacity puts the country in second place behind the United States, which boasts a capacity of 3-4 GW.
Other heavyweights in this space include Canada (400 MW), Malaysia (300 MW), Gulf nations (700 MW), and Kazakhstan (100 MW).
Kommersant’s report also attributed Russia’s recent achievement to the United States’ shrinking market share in light of the recent crackdown on miners.
The report highlighted the lack of regulatory clarity in the United States and indicated that the current landscape may trigger a new redistribution of the Bitcoin mining market.
However, without a legal framework for miners and the growing risk of sanctions, Russian miners may face difficulty in maintaining their market share.
Data from The Cambridge Center for Alternative Finance shows that in December 2021, Russia was ahead of the United States and Kazakhstan in terms of Bitcoin mining capacity.
The year before that saw China take the lead in terms of Bitcoin hash rate, boasting a whopping 65% market share.