Russia's bitcoin-mining industry is booming through war and sanctions

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The bitcoin mining industry has proven to be an unexpected beneficiary of Russia's invasion of Ukraine and Western sanctions. Hardware manufacturers, according to, have been doing more business in the country, with more mining machines flowing into Russia than anywhere else in the world.

Although there's risk for foreign firms setting up shop in Russia, the conditions there and improving mining economics remain attractive, blockchain executives said at CoinDesk's Consensus 2023 festival. "Russia had to divert its energy flow from EU in 2022 and being left with large excess capacity, bitcoin mining can be its new client," the company wrote in a report. With cheap energy being a major contributor to mining profits, the region looks poised to develop and attract more business.

 

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