## Why Does Russia Continue to Dominate Bitcoin Mining Worldwide?

Russia's position as the second-largest global Bitcoin producer continues to solidify in 2025, despite an increasingly hostile environment. The country mined 26,000 BTC with a value of $2.2 billion during the year, maintaining a hash rate above 1 Zh/s according to RBC data. This figure demonstrates the operational capacity of the Russian mining sector, even in the face of unprecedented economic and regulatory pressures.

### Challenges Threatening Profitability

However, the reality on the ground is more complex. Russian miners are experiencing a significant decline in profitability, which dropped to $35 per PH/s in December, representing a 45% contraction since July. This deterioration is mainly due to two factors: the sustained increase in electricity costs and an evolving regulatory framework that creates operational uncertainty.

The introduction of the legal framework for mining in November 2024 was a positive step, but it has encountered practical obstacles. Legalization issues with equipment and energy restrictions imposed by regional authorities limit the expansion of new operations and the optimization of existing ones.

### Innovation as a Survival Strategy

To counteract cost pressures, Russian miners are diversifying their approach. The growing adoption of artificial intelligence in operations management and energy generation using natural gas emerge as key solutions to maintain competitiveness. These strategies enable the optimization of energy consumption and reduction of operational expenses in an increasingly tight margin environment.

### The Global Regulatory Landscape as a Determining Factor

The international landscape also raises concerns. With the imminent adoption of the EU's MiCA regulation and growing worries about Compatibility with Financial Terrorism Regulations (CFT), it is anticipated that global regulatory changes will profoundly impact the mining industry. These adjustments could significantly alter competitive dynamics and force producers to adapt to stricter standards.

Despite these obstacles, Russia maintains its relevance in global Bitcoin mining, demonstrating that technical capacity and adaptability are crucial elements in an industry undergoing rapid transformation.