Important Siberia Update

Frequently Asked Questions

Over the past few days, many clients have reached out with questions about the situation at our Siberia facility.

We fully understand the frustration, confusion, and disappointment this has caused.

This is not the outcome we wanted. We are also very upset about the situation, and over the past days our team has been making many phone calls, speaking with local contacts, asking other operators, and trying to call in favors to find a practical solution.

Unfortunately, after looking at every realistic option, we need to be transparent about what is and is not possible.

This FAQ is intended to provide a general operational update based on the information currently available to us. It does not amend, replace, or waive any rights or obligations under the applicable customer agreements. In case of any inconsistency, the signed agreements remain leading.

What happened in Siberia?

Since 2024, Russia has gone through a major regulatory shift around cryptocurrency mining.

Mining was officially legalized, but this also came with strict new rules around registration, taxation, electricity usage, and regional restrictions. Reuters reported that Russia introduced mining restrictions in certain Siberian regions to reduce pressure on the electricity grid, especially in low-cost energy areas around Lake Baikal.

The Moscow Times also reported that mining in certain Siberian regions would be prohibited during winter periods, with annual seasonal restrictions planned through 2031.

More recently, several reports have described a broader crackdown on unregistered mining operations, with authorities targeting tens of thousands of miners and expanding restrictions in multiple regions.

So the issue is not that one private facility suddenly decided to stop.

This is part of a wider regulatory wave in Russia that started in 2024 and has continued to become stricter.

Does this mean all Bitcoin mining in Russia is illegal?

No. Bitcoin mining is not completely illegal across all of Russia.

However, in several regions, including parts of Siberia, mining has either been banned, seasonally restricted, or made practically impossible unless operators comply with strict registration and taxation requirements.

For foreign-owned machines, this creates a major practical problem.

In order to continue legally, each client would likely need to set up a Russian structure, register the machines, comply with Russian tax rules, and operate within the new local framework.

For most international clients, this is simply not practical.

What articles can I read for more context?

News Explorer - Bitcoin Mining Ban in Siberia Expanded Indefinitely to Address Power Shortage

Bitcoin mining ban welcomed by power-depleted Russian regions

Russia Targets 50,000 Miners as Crypto Mining Banned in 13 Regions

Russia Bans Winter Cryptocurrency Mining in Siberia, North Caucasus and Occupied Ukraine

Russia restricts cryptocurrency mining in low-energy regions

Russia Bans Bitcoin Mining in Two More Regions Until 2031

Does this apply to the Arctic facility?

No.This situation does not apply to our Arctic facility.

The Arctic facility is in a different area, under different rules and regulations.

The machines there are located in a special free zone and have already gone through a specialized import process earlier this year.

This means those machines are compliant under the applicable framework for that location.

We understand why clients ask this question, especially because both locations are in Russia. But from a legal, operational, and import perspective, these are two different situations.

Are the Siberia machines at the end of their economic lifespan?

No. This is an important point.

There seems to be a misunderstanding here.

We are not saying that the machines have no economic lifespan left.

Machines such as the S19J Pro, S19K Pro, and Whatsminer M30S++ can still technically run.

The real issue is different:

There is currently no economically sensible way to continue operating these machines under the new circumstances.

A machine can still have technical life left, but if the cost and complexity of relocating, importing, registering, or hosting it somewhere else becomes too high, the machine may no longer be economically viable.

That is the situation we are facing.

Option 1: Can we place the machines in another Russian facility?

We have looked into this.

Unfortunately, this does not appear to be a practical solution.

Under the new regulations, foreign-owned machines create major compliance issues. In practice, each client would likely need to travel to Russia, set up a Russian company or structure, register their machines, comply with local tax obligations, and operate under the new rules.

That is not realistic for most clients.

We have also asked around with other operators and facilities. At this moment, we have not found another facility willing or able to take these machines under these circumstances.

Option 2: Can we ship the machines to Finland?

Many clients have asked this, and we completely understand why.

Finland is one of our strongest locations. It has a low energy rate, a stable European jurisdiction, and a very attractive long-term setup.

However, the Finland facility uses a completely different mining model.

In Finland, the heat generated by the machines is reused to heat homes, hospitals, universities, and commercial buildings. That is one of the main reasons we were able to secure such attractive energy conditions.

But for this model, we need specialized hydro mining machines.

The machines in Siberia are air-cooled machines.

They are not compatible with the Finnish heat-reuse setup and cannot simply be plugged into the Finland facility.

So unfortunately, shipping the Siberia machines to Finland is not technically possible.

Option 3: Can we ship the machines to another country?

In theory, this sounds like a logical option.

In practice, it is extremely difficult.

Low-cost hosting locations are scarce right now. On top of that, transporting machines from Siberia is expensive and complicated.

The facility is located in a relatively remote area. Due to the current geopolitical situation, there are no simple direct logistics routes to many alternative locations.

Each machine weighs roughly 15 kg. Once you include local transport, multiple shipping legs, export handling, import duties, customs clearance, and setup costs in a new country, the total cost could easily be somewhere around $500 to $1,000 or more per machine.

Also the machines might be in transit for a couple of weeks, if not months.

For newer generation machines, that might sometimes be worth considering.

For older generation machines, the costs often do not outweigh the expected future returns.

That is the core economic problem.

Option 4: Can the machines be sold?

We are also looking into this option.

However, the secondary market is extremely difficult right now.

There are several reasons for this:

First, a large number of machines have recently entered the market. Several industry reports mention that Russian authorities are targeting around 50,000 miners, which has created additional pressure on the secondary market.

Second, we are currently in a weak market environment, which means there are fewer buyers for older generation machines.

Third, many buyers prefer newer, more efficient hardware.

We are still trying to see if there is any party interested in buying the machines, but we want to be honest: the market is currently flooded with secondary supply, and demand for older generation machines is limited.

Why can’t Epic Mining simply absorb all costs?

We understand why clients ask this question.

But the reality is that this situation was caused by a regulatory change outside of our control.

We did not choose to shut down the facility.

We did not want these machines to stop running.

Our Siberian operation had a really great uptime, trackrecord and efficiency.

We have spent the past days actively trying to find a reasonable solution.

On top of that, the money received for the machines was already paid to the supplier at the time of the purchase and isn’t just sitting in a bank account

We have also invested significant resources into this facility, which we also cannot use anymore.

Our responsibility is to be honest about the situation, even when the answer is not what anyone wants to hear.

Nevertheless, we keep searching for the best alternatives.

Why did this happen now?

Russia’s mining rules changed significantly after 2024.

Before that, the environment was different. Mining operations in Siberia were able to operate under a much more flexible framework.

But after legalization came regulation.

This included registration requirements, taxation, electricity restrictions, regional limitations, and increased enforcement.

Reuters reported that Russia introduced new mining rules and taxes after legalizing mining, with the government expecting significant tax revenue from the sector.

Reuters also reported earlier that President Putin had raised concerns about the large energy consumption of mining farms in Siberia and that regulation around mining electricity usage and tariffs was part of the new legal framework.

This is exactly the kind of regulatory wave that has now affected our Siberia location.

What is Epic Mining doing now?

We are continuing to explore whether there is any realistic recovery option.

That includes:

Looking for potential buyers.

Speaking with other facility operators.

Checking whether any alternative logistics route makes economic sense.

Reviewing whether any group solution is possible.

However, based on what we know today, there is no easy or economically sensible solution available.

We know this is disappointing.

But we would rather be transparent with you than create false hope.

Summary

The Siberia issue is not caused by the machines suddenly becoming useless.

It is caused by a major regulatory shift in Russia.

The machines may still have technical life left, but the practical options to keep them running have become either impossible, non-compliant, or economically unattractive.

This situation does not apply to the Arctic facility, which operates under a different structure, in a different area, with a different import and compliance process.

We will continue to investigate every realistic option and communicate updates as soon as we have more clarity.

Follow Up Update on 5th of May 2026

Dear Epic Miners,

We would like to inform you about an important follow up update regarding your mining operations in our Siberia facility.

Recent developments in Russian cryptocurrency regulations have had a direct and

material impact on mining activities in Siberia. Authorities have introduced

stricter enforcement measures targeting mining operations in this specific region.

As publicly reported, Russia is actively restricting mining activity in Siberia, affecting an estimated 50,000 machines.

You can read more here:

Article: Russia Target 50,000 miners as Crypto Mining Banned in 13 Siberia Regions

The scale of this development has resulted in a substantial and sudden increase in thesupply of mining hardware in the market. As a consequence, resale opportunities are extremely limited and residual values have significantly declined.

Due to these regulatory changes, our local hosting partner is no longer able to continue operations under the current conditions. As a result, the Siberia facility has been fully phased out and all machines have been shut down as of May 1st.

Following a comprehensive assessment, we have concluded that neither relocation nor resale constitutes a commercially viable option. The combination of:

Severely reduced residual market value due to oversupply
Significantly increased logistics and transportation costs

and the remaining economic lifespan of this generation of machines results in

a situation where the costs of relocation would materially exceed any potential recoverable value.

All outstanding invoices, energy payments, and mined BTC balances will be paid out accordingly. We are finalizing the remaining items and ensuring all obligations are completed as soon as possible.

We understand that this situation is disappointing. However, given the external regulatory constraints and market conditions, this outcome is unavoidable.

At the same time, we believe this represents an appropriate moment to consider a

forward-looking approach and optimize your mining portfolio for long-term stability and performance.

Unfortunately there is no compensation in this scenario. The policies of the government are outside of our influence. We have also invested heavily into a location that we cannot use anymore, so we are also very impacted by the situation.

We can try to arrange the shipment of the machine to your home address. However, bear in mind that the machine is quite big and heavy, so transport by truck and plane from Siberia will probably cost around $500 per machine. Keep in mind that Russia is sanctioned by the Netherlands, so there are no easy direct transport lines.

Usually it does not make any economic sense for our clients to pay that shipping cost versus what the machine can still generate. But, if you agree to paying this shipping fee, we can see if it is possible to still ship from Siberia to the Netherlands.

If you have any questions, feel free to reach out, we are here to support you.

Update on 30th of April

Dear Epic Miner,

We would like to inform you about an important update regarding your mining operations in our Siberia facility.

Due to recent changes in Russian cryptocurrency mining regulations, the rules for operating mining facilities in this specific Siberia region have changed significantly. As a result, our local hosting partner is no longer able to continue operations under the current conditions.

Because of this, the Siberia location will be fully phased out and all machines will be shut down as of May 1st 2026.

In addition, the machines currently operating in this facility belong to an older generation. Based on our analysis, relocating or reselling these machines is not economically viable, as the costs would outweigh the expected returns and remaining lifespan.

We understand this may be disappointing. At the same time, we believe this is the right moment to take a well-considered next step and optimize your mining setup for the future.

Your options:

1. Stop your current machines

We will safely shut down your machines and finalize your current setup. Everything regarding the Siberia operations will be fully settled. All outstanding invoices, energy payments, and mined BTC balances will be paid out accordingly. We are finalizing the remaining items and ensuring all obligations are completed as soon as possible.

2. Upgrade via our Mine Forward program (recommended)

To support you in this transition, we are offering an enhanced Mine Forward program:

- $500 discount on your first new machine

- Additional $200 discount for each extra machines

- No setup costs

- Migration to a stable, high-performance location in Finland

This allows you to reset your portfolio with a more efficient and future-proof setup.

In addition, customers who choose to upgrade will receive priority deployment and fast-track installation, ensuring your new machines are online as quickly as possible.

Ready to upgrade? Schedule a call!

Our team will personally guide you through this process and help you make the best decision based on your situation.

If you have any questions, feel free to reach out, we are here to support you.

1. What does this update mean?

The Siberia mining operations are being fully phased out. All activities connected to this location are now being finalized and closed in an orderly manner.

2. Why is the Siberia facility closing?

Due to recent regulatory changes in Russia affecting cryptocurrency mining operations in the specific region Siberia, our local hosting partner is no longer able to continue operating under the current conditions.

3. When will the operations stop?

All machines at the Siberia facility will be shut down as of May 1st.

4. What happens to my outstanding invoices?

All outstanding invoices related to the Siberia operations will be fully settled as part of the closure process.

5. What about unpaid energy balances or credits?

Any pending energy payments, balances, or adjustments connected to your Siberia operations will be calculated and paid out accordingly.

6. What happens to mined BTC that has not yet been paid?

All mined BTC balances that are still outstanding will be paid out during the final settlement process.

7. When will payments be completed?

We are currently finalizing all remaining items and working to complete all settlements as soon as possible. Customers will be updated if specific timelines apply.

8. Do I need to do anything right now?

At this stage, no immediate action is required unless our team contacts you for verification or payment details.

9. Can I continue mining with Epic Mining?

Yes. Customers who wish to continue mining can transition through our Mine Forward Upgrade program, offering a more efficient and future-ready setup.

10. What are the Mine Forward upgrade benefits?

Customers choosing to upgrade may receive:

$500 discount on the first new machine
$200 additional discount for each extra machine
No setup costs
Migration to Finland hosting
Priority deployment and fast-track installation

11. Why aren’t old machines being relocated?

After review, relocating older-generation machines is not economically viable due to transport costs, setup costs, and remaining machine lifespan.

12. Will customer funds be safe?

Yes. The closure process includes settling all outstanding operational balances, invoices, and mined BTC payouts.

13. How will I receive updates?

Our team will communicate directly through official email and support channels with any further instructions or timelines.

14. Who can I contact for support?

Please contact the Epic Mining support team through the official support desk support@epicmining.io for assistance.

15. Is this an exit or shutdown of Epic Mining?

No. This is a closure of one specific location and a strategic portfolio reset, with upgrade opportunities available for customers who want to continue mining.