Russia is accelerating its efforts to expand global computing power and dominate the cryptocurrency mining sector. On October 18, 2024, at the BRICS Business Forum in Moscow, BitRiver, Russia’s largest data center operator, and the Russian Direct Investment Fund (RDIF) announced a strategic partnership to launch cryptocurrency mining and artificial intelligence (AI) computing facilities across BRICS nations.
BitRiver, with 21 operational data centers across Russia and ten more under construction, plays a significant role in energy-intensive computing. This joint venture with RDIF is aimed at creating cutting-edge data centers for cryptocurrency mining and AI processing, further establishing Russia’s foothold in the digital economy.
Expanding BRICS Mining Infrastructure: Implications for Cryptocurrency
The BRICS alliance—comprising Brazil, Russia, India, China, and South Africa, along with new members such as Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE—accounts for over 40% of the world’s population and a quarter of the global economy. This partnership between BitRiver and RDIF is a critical step towards building a sovereign computing infrastructure that minimizes reliance on Western technology providers.
BitRiver CEO Igor Runets emphasized that this initiative would drive economic growth, enhance Russia’s AI capabilities, and create skilled jobs across the country. He stated:
“Mining is not just the foundation for the digital economy. If Russia catches up with the United States in mining, our country cannot be ignored.”
This expansion will also improve liquidity in cross-border settlements with BRICS partners and provide a foundation for future AI projects. Kirill Dmitriev, CEO of RDIF, echoed these sentiments, highlighting the importance of AI and computing infrastructure for BRICS nations to reduce costs and foreign technology dependence.
The vision is clear: BRICS nations are working towards a self-sufficient, technologically advanced ecosystem, fostering data sovereignty and independent AI development.
Russia’s Regulatory Environment and Mining Growth
This partnership coincides with the recent implementation of Russia’s cryptocurrency mining regulation law, passed in August 2024, which provides clear operational guidelines for large-scale industrial mining. Operators must register in government databases, adhere to energy consumption limits, and report their activities. Furthermore, the law allows Russian-mined cryptocurrency to be used for international settlements.
BitRiver is fully compliant with these new regulations, positioning itself as a key player in Russia’s ambition to become the world’s second-largest cryptocurrency mining market. The partnership with RDIF also aligns with Russia’s broader goal of building alternative systems that reduce reliance on Western technologies.
In addition to this mining initiative, Russia is actively developing its digital assets infrastructure. Major banks, such as Sberbank, have already launched digital asset initiatives, further aligning with BRICS’ objective of achieving financial independence from Western institutions.
Rising Hash Rate and BRICS Impact on Global Mining
According to data from blockchain.com, Bitcoin’s total hash rate—a measure of computing power dedicated to mining—reached 723.63M TH/s in October 2024, marking a 55% increase from the previous year. This surge in hash rate underscores the growing importance of institutional mining infrastructure, like the one BitRiver and RDIF are building.
With increased mining and data processing capabilities, BRICS countries are well-positioned to experience greater liquidity and economic growth as global cryptocurrency adoption continues to rise.
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