Over time, crypto mining has gained significant traction, with Russia standing at the top in terms of mining operations; in a most recent development, the enforcement agency of the nation has seized several machines from a village in Ingushetia after severe power outages were reported.
It is worth noting that the energy consumption of Ingushetia grew by more than 40% in the last year.
Crypto mining operations creating power scarcity in Russia
Especially after the approval of crypto mining activities in Russia in early 2024, there has been a severe outrage over power in the territories of the nation.
According to a few reports, in the last quarter of 2024, over one dozen mining farms were sued by the Russian authorities for operating unregistered crypto-mining services in the nation.
During the seizure, the authorities discovered a few mining operations being carried out on non-residential premises. A spokesperson confirmed that the agency had seized around 200 mining rigs of higher capacity.
The Russian agencies have clearly said that those operating or indulging in crypto mining activities in the region without registration with local or national authorities might face severe punishment with a fine.
Moscow, now under Russia’s control, has banned all sorts of digital mining activities; the move has been followed by a back-to-back surge in power usage, resulting in a power outage for the common man.
Annual power usage in Russia has reached new heights
As reported on January 14, 2025, the YoY electricity usage in Russia has reached 1.192 trillion kWh, with a growth of 3.1% in 2024. At the same time, the nation’s power generation surged by 2.9%.
Till January 2025, Russia’s installed capacity of power plants was 269.893 GW. However, the power generation from hydroelectric grew by around 4.9%, and the power generated by thermal power plants surged 3.9%.
Experts say the usage of power has reached its peak, yet the generation power of Russia has remained steady and slow, and if the usage grows, the nation might face an energy crisis in the next few years.
In the year 2024, the number of crypto mining farms reached 136,000 units after a growth of 7%, and now Russia’s mining capacity has reportedly reached 11 GW. Yet the authorities said that from 11GW, only 3 GW is used by registered mining farms.
Despite a few favorable sets of rules for crypto mining, the number of illicit activities concerning crypto has been growing, and the authorities have seized millions of dollars and over two dozen specialized crypto mining equipment.
What is pulling the crypto market downwards?
Until publishing, the crypto market cap was at $2.86 trillion, falling over 5% in the past 7 days, and the intraday volume was $159.30 billion with a loss of 14%.
Bitcoin trading below $90k, at $86,277, with a loss of 2.89% intraday and, the market cap was $1.71 trillion, and trading volume was $70.12 billion.
Market watchers argue that the destructive hack of Bybit, which resulted in losses of over $1 billion, is one of the primary reasons behind the broader market’s redness.
