Bitcoin Mining Revenue in Russia Grows 18x in 4 Years Before ‘Worst Quarter’ – Mining Bitcoin News

Russian revenues from bitcoin minting have multiplied in recent years before falling significantly since the spring. The findings come from a new study which also found that the sector grew during both ups and downs in the crypto market.

$1.4 billion in revenue expected from Russia’s Bitcoin mining this year as business shrinks

Revenue from bitcoin mining in Russia has increased 18 times between 2017 and 2021, according to a new report from computer hardware distributor Intelion Data Systems, cited by RBC Crypto. During the period, the total grew from 7 billion rubles in the first year studied (under $114 million, at current exchange rates) to 128 billion rubles in the last (over $2 billion).

According to the research, bitcoin mining revenues in the last eight months have fallen to just over 57 billion rubles ($929 million), despite a fairly safe start to 2022. In fact, the second quarter of the year is considered by experts to be the worst in over a decade with observation.

Russia controlled 4.66% of the monthly global hashrate as of January 2022, but its share has shrunk as Russian miners were later hit by US sanctions imposed over the war in Ukraine. Taking into account these indicators, the expected annual turnover in the segment this year is approximately 85.59 billion rubles (less than 1.39 billion dollars).

Nevertheless, the mining industry in Russia in the last five years, taken as a whole, has produced significant results in terms of growth dynamics, the analysts point out. Since 2017, when the popularity of this type of business began to increase exponentially, revenues in the sector have increased at a rapid pace for the greater part of that period, regardless of the ups and downs of the crypto market.

According to CEO of Intelion Data Systems Timofey Semenov, the expansion potential of cryptomining in the Russian Federation is huge and could have a significant impact on the Russian economy. It could also help the vast country deploy its own IT infrastructure and attract investment in its energy-rich regions.

Another study conducted earlier by Semenov’s company revealed that data centers minting digital currencies now use 20 times more electricity than five years ago. Total energy consumption in the sector has reached that of agriculture, the authors said in August.

Do you think the Russian mining industry will be able to recover its growth under increasing sanctions? Share your thoughts on the topic in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’ quote: “To be a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.