EU Carbon Pricing Drives Bitcoin Mining to Russia Amid Profit Maximization
A study published by Vietnamese investigators has found that high carbon emissions pricing in the European Union (EU) is driving Bitcoin mining operations to Russia. The researchers examined daily power sector emissions from the EU, Russia, and other parts of the world, and linked them to Bitcoin's daily closing prices.
The results showed a statistical correlation between carbon pricing in Europe and carbon emissions in Russia, suggesting that mining companies are shutting down equipment in the EU during peak times when both Bitcoin and EU carbon allowance prices grow higher, and turning it on in Russia where there is no carbon pricing structure to maximize their profit margins.
The study found that this phenomenon does not occur between the EU and other parts of the world. The researchers also noted that while they did not observe physical relocation of mining machinery to Russia, it is likely that companies with hardware in both jurisdictions are responsible for this operational migration.
However, the study also points out that the Russian government has implemented a crypto mining ban in certain regions starting from 2025, which could complicate the operational relocation of these activities and reduce the possibilities for mining companies.