20-6-2025 – Russia has unveiled its inaugural Bitcoin mining investment fund, dubbed “Crypto Factory,” marking a pioneering venture into cryptocurrency-driven wealth creation. Spearheaded by Penza-based energy infrastructure giant Power Systems, in partnership with financial management firm Finam, this closed-end mutual fund (CEF) offers qualified investors an opportunity to reap profits from Bitcoin mining without the complexities of managing mining rigs.
With a starting capital of 850 million rubles—approximately $11 million—the fund restricts participation to high-net-worth individuals committing at least 5 million rubles (around $63,700). Unlike open-ended funds, its shares are locked from secondary market trading, with a five-year term and a 1% annual commission levied by Finam based on the fund’s net asset value.
Targeting 49% returns with quarterly payouts
The initiative capitalises on Russia’s abundant natural resources, specifically harnessing “associated gas” from oil drilling sites to power Bitcoin mining farms. This innovative approach not only repurposes gas that would otherwise be flared—reducing environmental waste—but also slashes operational costs, positioning the venture as a greener alternative in the energy-intensive world of crypto mining.
Power Systems, established in 2005, projects enticing returns of 49% per annum, with quarterly payouts of 10%, provided Bitcoin’s price remains above $35,000 for the fund’s duration. Should the cryptocurrency dip below this threshold, profitability could falter, exposing investors to the market’s inherent volatility.
Transparency lies at the heart of Crypto Factory’s appeal, with Power Systems offering investors real-time access to CCTV feeds and detailed analytics from the mining farms, fostering confidence without requiring on-site presence.
The fund’s launch dovetails with Russia’s evolving stance on cryptocurrency, evidenced by the Moscow Exchange’s recent introduction of Bitcoin futures contracts linked to BlackRock’s iShares Bitcoin Trust ETF—a first for the exchange—and the Russian Central Bank’s approval of crypto derivative products for licensed institutions. These shifts signal a growing openness to digital assets, positioning Russia as an emerging player in the global crypto landscape.
