Why the world’s second-largest Bitcoin mining power is shutting down rigs in its capital city

PolicyWhy the world’s second-largest Bitcoin mining power is shutting down rigs in its capital cityThe Energy Ministry enacted the year-round restriction to mitigate power capacity shortages, as energy-intensive mining facilities continue to strain regional grids.By Francisco Rodrigues|Edited by Aoyon Ashraf2 hrs ago2 min readMake preferred on ShareShare this articleCopy linkX iconX (Twitter)LinkedInFacebookEmailMake preferred on SummaryShowMoscow and parts of Kursk banned crypto mining and pool participation through Dec. 31, 2032, under government decree No. 936 to preserve power grid stability.The Energy Ministry enacted the year-round restriction to mitigate power-capacity shortages as energy-intensive mining facilities continue to strain regional grids.This decision follows Russia's legalization of registered mining in 2024 and subsequent bans in 10 other regions due to rising electricity demand.Crypto mining was banned in Moscow, the surrounding Moscow Region and parts of Kursk, with the restrictions set to run through Dec. 31, 2032.The measure, established under government decree No. 936, also prohibits participation in crypto mining pools. The decree was signed on July 25 and published on July 31, local media reports.Russia as a whole accounted for an estimated 175 exahashes per second, or 16.4% of Bitcoin’s global computing power, in the first quarter, according to Luxor’s Hashrate Index. That placed it second behind the U.S., although it’s unclear what capacity was located in the newly restricted region.The country’s Energy Ministry said a year-round restriction was needed to reduce the risk of power-capacity shortages as energy-intensive mining facilities connect to regional grids. Mining currently consumes roughly 1 gigawatt in the Moscow power system, while the region’s data-center capacity could reach 3.6 GW, or 17% of peak demand, by 2032, Interfax reported after the decree was first signed.Mining is also linked to the country’s Western sanctions. R…

Why the world’s second-largest Bitcoin mining power is shutting down rigs in its capital city

Coins in this story

Discussion

Related stories

Robot maker Unitree is going public. Hyperliquid traders see 4x upside from IPO price

Swiss mega-bank UBS ramps up its Bitcoin exposure with a massive 24-fold surge in ETF call options

Paul Tudor Jones’ investment firm increases stake in BlackRock's bitcoin ETF after year of selling