Russian Crypto Mining Giants BitRiver and Intelion Report $200M Revenue in FY2024

In the heart of Russia, BitRiver and Intelion have showcased the robust growth of the crypto mining sector, amassing a combined revenue of $200 million in Fiscal Year 2024. Dominating over 50% of the market, these industry leaders underscore the potential of decentralized finance. Yet, the figures do not account for the vast underground of illegal mining operations, casting a shadow over the official statistics.

• BitRiver and Intelion achieve $200M combined revenue
• Control over 50% of Russian crypto mining market
• Exploring alternative and nuclear energy sources
• Russia ranks second globally in mining volume

Bitcoin mining, the process where specialized computers solve mathematical problems to validate transactions and add them to the blockchain, has seen a surge in Russia. BitRiver, operating 175,000 mining rigs across 15 data centers, harnesses an impressive 533 MW of electrical power. Their shift towards sustainability includes using associated gas, a byproduct of oil extraction, as an alternative energy source, with 30 MW already coming from this eco-friendly approach. Meanwhile, Intelion reported $78 million in revenue, leveraging 298 MW of power and forging partnerships with nuclear power providers like Rosenergoatom, which powers their data center near the Kalinin Nuclear Power Plant in Tver. Intelion’s pursuits extend to gas generation and industrial power capacities, showcasing a diverse approach to energy sourcing.

Smaller firms like Promminer are also making significant strides, reporting $59.8 million in revenue and specializing in mobile data centers. This diversity in operations highlights the sector’s robust health, positioning Russia as second in the world in mining volume and first in growth rates, according to Sergey Bezdelov, Director of the Industrial Mining Association.

“Russia now ranks second in the world in terms of mining volume, and first in terms of growth rates.” – Sergey Bezdelov, Director of the Industrial Mining Association.

Despite the impressive figures, the data does not account for Russia’s illegal mining sector. Illegal operations have led to significant financial losses, with reports indicating over $14 million lost in 2024. Moreover, the introduction of seasonal bans on crypto mining in certain regions hints at potential future challenges for the sector.

The move towards alternative energy by BitRiver and Intelion reflects a broader industry trend towards sustainability, crucial as mining operations face scrutiny over energy use. Additionally, Russian firms like BitCluster are expanding into Ethiopia and Paraguay, demonstrating a global strategy that could further solidify Russia’s position in the crypto mining world.

While we celebrate the achievements and the potential for decentralized finance to disrupt traditional systems, the crypto community must remain vigilant. The dominance of BitRiver and Intelion could stifle competition, and the illegal mining sector presents a regulatory challenge. As we champion decentralization and the potential of cryptocurrencies to challenge the status quo, we must also advocate for balanced regulatory measures to ensure the industry’s long-term health and integrity.

Key Takeaways and Questions

• What was the combined revenue of BitRiver and Intelion in FY2024?

  The combined revenue was $200 million.

• How much of the Russian crypto mining market do BitRiver and Intelion control?

  Over 50% of the market.

• What alternative energy sources is BitRiver exploring?

  BitRiver is exploring associated gas extracted at oil drilling sites as an alternative energy source.

• What unique approach is Intelion taking towards energy sourcing?

  Intelion has partnered with nuclear power providers and is also expanding into gas generation and utilizing industrial power capacities.

• Which smaller firm specializes in mobile data centers?

  Promminer specializes in mobile data centers.

• What is Russia’s global ranking in crypto mining volume and growth rates?

  Russia ranks second in the world in terms of mining volume and first in terms of growth rates.

• Does the data account for Russia’s illegal crypto mining sector?

  No, the data does not account for the illegal sector, which remains largely unreported.