Russian Crypto Miners Relocating to Big Urban Areas – But Face Fresh Challenge

Core Insights - Demand for hardware in traditional Bitcoin mining hotspots is declining, while urban areas in Russia are seeing increased purchases of mining rigs [1][3] - Moscow and the surrounding region account for 21.9% of mining hardware purchases, significantly higher than the 6.7% in Irkutsk, the birthplace of Russian Bitcoin mining [2][3] - The overall demand for mining equipment in the Russian South has decreased by 19.3% in the first eight months of 2025 [4] Demand Trends - Moscow and Moscow Oblast lead in mining hardware purchases, indicating a shift towards urban centers [2] - Irkutsk's demand has plummeted due to legal restrictions on mining operations and existing facilities nearing full capacity [3] - St. Petersburg and the Leningrad region follow with 4.7% of the demand, while Krasnodar Krai and Kuban are also notable areas for mining equipment purchases [4] Market Dynamics - The decline in demand is attributed to a market correction following a spike in interest after the legalization of crypto mining in Russia [5] - The excitement around the sector has diminished since the beginning of the year, impacting purchasing behavior [5] - Traditional mining regions face challenges such as low population density and limited power generation capabilities, leading to operational overloads [6]