Bitriver Assesses Energy Consumption by Russian Miners

Electricity consumption by miners based in Russia has exceeded 2.5 GW, according to estimates by Bitriver CEO Igor Runets, reports TASS.

The executive explained that this figure includes illegal grey cryptocurrency mining.

“Such players connect to communal power grids at residential rates, which are not designed for the consumption profile typical of mining. Moreover, this activity often exceeds the declared volume, can operate on the internal needs of power plants, and write off their costs as losses in electrical networks. All these factors ultimately lead to emergency situations, power supply disruptions, and non-payments,” commented Runets.

The consumption profile of legitimate industry players resembles that of greenhouse farms, metallurgical production, and the artificial intelligence sector—continuous use of electricity at maximum possible capacity, he added.

Regulations introduced in August 2024 will help reduce imbalances in the energy system and mitigate the energy deficit caused by grey mining in several Russian regions, emphasized the Bitriver CEO.

Runets is convinced that cryptocurrency mining will become “a more orderly, structured, and transparent business,” which will displace the grey segment.

“For law-abiding companies and citizens, risks will be minimal, as authorities will apply the most advanced regulatory approaches to this high-tech activity,” he noted.

According to the executive, the development of mining will spur growth in blockchain innovations, digital finance, and the improvement of banking technologies. The next step will be the launch of an experimental legal regime, as well as determining the specifics of taxation for cryptocurrency mining and transactions.

“This will create new growth points for the economy and […] increase state tax revenues. The only risk here is delaying the process and setting overly strict barriers for industry participants, which could lead to a non-functional structure. Hypothetical threats to financial stability are easily covered by the tools of supervisory and regulatory bodies,” the expert indicated.

In August, Russian President Vladimir Putin signed a law legalizing mining in Russia.

Earlier, the head of state described the crypto market as “a very dynamic and promising area of the modern economy.” Later, he called for action against grey and black mining.