Russia Launches First Bitcoin Mining Fund With 49% Annual Return

A Russian power firm has launched the nation’s first bitcoin mining-related closed-end mutual investment fund (CEF). The fund, named Crypto Factory, is a joint venture between the Penza-based gas power unit provider Power Systems and the financial management firm Finam. This initiative marks a significant step in the integration of cryptocurrency mining with traditional energy sectors in Russia.

Only qualified investors will be allowed to invest in the fund, which has a minimum investment period of five years. The fund will utilize investors' capital to power Bitcoin (BTC) mining rigs on farms that use natural gas. The operators of the fund will then sell the mined Bitcoin and provide regular payouts to the investors. This model aims to leverage the abundant natural gas resources in Russia to support cryptocurrency mining operations, potentially reducing costs and environmental impact.

Power Systems has assured investors that they will receive analytics data and access to CCTV camera feeds that monitor the mining farms. The fund’s term is five years, with an initial capital worth 850 million rubles. Potential investors must put a minimum of 5 million rubles into the fund. The power firm's basic financial model assumes a return of 49% per annum, with 10% per year interim payments, paid quarterly. Finam has stated that the shares will not be made available on secondary markets and that its commission fee will be 1% of the average annual value of the fund’s net assets.

A Power Systems executive highlighted that the fund would reach a break-even point if Bitcoin prices do not fall below $35,000 in the next five years. This means that as long as Bitcoin prices remain above this threshold, investors could expect to make money from their stakes. The exact cost of mining BTC in Russia remains unclear, with power prices varying from region to region. However, experts have noted that US miners spent an average of $82,162 to mine one Bitcoin at the end of the past financial year.

This development comes as Russia has become more bullish on Bitcoin and cryptocurrency-related financial products in 2025. At the end of May, the Russian Central Bank allowed financial institutions to offer qualified investors access to crypto derivative products. Earlier this month, the Moscow Exchange began offering a Bitcoin futures contract product for qualified investors, linked to BlackRock’s iShares Bitcoin Trust ETF. This product is the exchange’s first crypto-related offering.

Power Systems, founded in 2005, has recently turned its attention to gas-powered crypto mining operations, using associated gas that is often released during oil drilling operations. Drillers usually flare this gas on site if they cannot find an immediate use for it. The firm claimed that mining BTC at gas fields “helps reduce costs.” It added that this not only makes mining cheaper but also helps reduce miners’ carbon footprints, aligning with broader environmental sustainability goals.