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Russian crypto mining sites jump 44% to 196,900 one year after Moscow legalizes industry

Russian crypto farms are nearing 200,000 as regulation, investment, and illegal activity collide across the energy-strained sector.

by Moses Edozie
31 minutes ago
in Crypto News
Reading Time: 3 mins read
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Russia’s crypto mining industry has swelled to 196,900 detected facilities in 2025, a 44% jump from the previous year, according to data from an AI-powered monitoring system developed by telecoms giant MTS.

The surge follows Moscow’s legalization of cryptocurrency mining in August 2024, which has attracted institutional capital even as more than 10 regions impose mining bans citing energy shortages.

AI monitoring reveals rapid growth of Russian crypto farms

Authorities are now counting Russian crypto farms using artificial intelligence. According to a report cited by business outlets RBC and Kommersant, the total number of crypto mining facilities has climbed to 196,900 in 2025, up from 136,600 at the end of 2024.

The figures come from EnergyTool, a platform developed by Russian telecoms company MTS. The system identifies crypto mining installations by analyzing electricity consumption data in real time, using AI and machine-learning algorithms to flag abnormal usage patterns.

EnergyTool monitors automated metering systems to detect unauthorized grid connections, meter tampering, and unusually high electrical loads—common indicators of mining activity. MTS announced earlier this year that it had secured a patent for the technology, which has been in operation for several years.

The data suggests that Russian crypto farms are expanding at a much faster pace than in previous years. By comparison, the year-on-year increase recorded at the end of 2024 was just 7%, underscoring how sharply the trend has accelerated since legalization.

Irkutsk and Siberia dominate Russian crypto farms landscape

Despite growing restrictions, certain regions continue to dominate the Russian crypto farms map. According to the MTS analysis, the Siberian regions of Irkutsk and Novosibirsk, along with the Republic of Bashkortostan, recorded the highest number of newly detected mining facilities.

Irkutsk, long known as Russia’s mining capital, has historically attracted miners with relatively low electricity tariffs. However, the dense concentration of both legal and illegal operations has strained local infrastructure, prompting authorities to impose a permanent mining ban in the southern part of the region.

More than 10 Russian regions have now prohibited mining activities until at least 2031, citing energy shortages linked to the proliferation of Russian crypto farms. Even so, mining activity continues to shift geographically rather than disappear.

Recent estimates suggest the Republic of Khakassia has overtaken Irkutsk as the most profitable mining region, followed by Tyumen and Murmansk. At the other end of the spectrum, relatively few new facilities were detected in regions such as Volgograd, Ivanovo, Sverdlovsk, and parts of the Central Black Earth Region.

Legalization and capital fuel Russian crypto farms expansion

Industry representatives say the legalization of mining is a major driver behind the rapid growth of Russian crypto farms. Sergey Bezdelov, head of Russia’s Industrial Mining Association, said institutional investors have increasingly embraced the sector since formal regulation was introduced.

“Since the state regulation of mining in August 2024, institutional investors have finally shifted toward the industry, which results in these figures,” — Sergey Bezdelov, Head, Russia’s Industrial Mining Association.

Bezdelov noted that part of the increase reflects mining operations moving out of the shadow economy, though he acknowledged that many facilities remain difficult to track.

Under current rules, miners must register with the Federal Tax Service and pay taxes, but officials estimate that only around 30% of operators have completed registration.

Anton Gontarev, commercial director of Intelion Data Systems, one of Russia’s largest mining companies, echoed that assessment.

The opposing view comes from the energy sector. A representative of Russian power company EN+ attributed the surge in Russian crypto farms largely to illegal mining, arguing that enforcement has not kept pace with the sector’s growth.

Enforcement tightens as Russian crypto farms test policy limits

Authorities are responding by expanding surveillance and enforcement tools. Law enforcement agencies now work with telecom companies to track internet traffic and electricity usage linked to illegal mining.

Proposals under discussion include criminalizing unauthorized mining and offering temporary amnesty for operators willing to legalize their activities.

At the same time, the economic value of Russian crypto farms has gained recognition at the highest levels of government. Both the Bank of Russia and the Kremlin have acknowledged the growing importance of crypto mining for the sanctioned economy, according to reports.

Tags: AIBitcoinblockchaincryptocrypto farmsdataeconomyelectricityenergyenforcementinvestmentminingpolicyRegulationRussiasanctions
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Moses Edozie

Moses Edozie

Moses Edozie is a writer and storyteller with a deep interest in cryptocurrency, blockchain innovation, and Web3 culture. Passionate about DeFi, NFTs, and the societal impact of decentralized systems, he creates clear, engaging narratives that connect complex technologies to everyday life.

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