Russia Launches Its First Bitcoin Mining Investment Fund Backed by Natural Gas Operations

Russia Launches Its First Bitcoin Mining Investment Fund With Focus on Gas-Powered Rigs

A Russian energy firm has introduced a new way for investors to earn returns from cryptocurrency mining—without setting up a single rig.

Power Systems, an energy infrastructure company based in Penza, has teamed up with financial management firm Finam to launch “Crypto Factory”, the country’s first closed-end mutual investment fund (CEF) tied directly to Bitcoin mining operations.

Source: Power Systems

How The Fund Works And Who Can Join

The Crypto Factory fund is not open to the general public.

Participation is restricted to qualified investors, each of whom must commit a minimum of 5 million rubles (around $63,700).

The total starting capital stands at 850 million rubles, or approximately $11 million.

Capital from investors will be used to run Bitcoin mining farms powered by natural gas, particularly “associated gas” collected from oil drilling sites.

These farms will mine Bitcoin, and profits from selling the mined coins will be distributed to investors through regular payouts.

The fund has a five-year term and is structured as a closed-end mutual fund.

That means shares won’t be traded on secondary markets, unlike open-ended funds.

Finam, the fund’s financial operator, will charge a 1% annual commission based on average net asset value.

Projected Returns Depend On Bitcoin Staying Above $35,000

Power Systems has shared optimistic financial expectations.

According to the firm’s model, investors could see returns of 49% per annum, with quarterly interim payments of 10% annually.

However, those numbers come with a key condition: the price of Bitcoin must stay above $35,000 for the next five years.

Source: Freepik

If prices fall below that level, the project risks falling below its break-even point, reducing or eliminating profits for investors.

Transparency Tools And Remote Access For Investors

In an effort to assure investors of operational transparency, Power Systems has promised access to live CCTV feeds from the mining farms, along with detailed analytics data.

The company believes this will help investors monitor performance without being physically present.

Source: Power Systems

Russia’s Changing Stance On Crypto Investments

The launch of Crypto Factory comes amid a broader shift in Russia’s stance toward crypto-related financial products.

Earlier this month, the Moscow Exchange began offering Bitcoin futures contracts to qualified investors.

These contracts are tied to BlackRock’s iShares Bitcoin Trust ETF—marking the first crypto product on the exchange.

In a separate move, the Russian Central Bank recently cleared the way for licensed institutions to offer crypto derivative products, a significant policy change that reflects growing state-level openness toward the sector.

Gas-Powered Mining Seen As Both Cost-Effective And Greener

Power Systems, originally founded in 2005, has in recent years focused on repurposing excess gas from oil drilling—typically burned off at the site—into a source of energy for Bitcoin mining.

The firm argues that this approach lowers operational costs and reduces the carbon footprint associated with mining.

The use of associated gas, which would otherwise be flared and wasted, is seen as a practical solution in regions with undeveloped infrastructure for gas capture and transport.

Energy Meets Crypto—But Will It Pay Off?

Crypto Factory could mark the start of a new hybrid investment path in Russia, where traditional energy meets digital assets.

But behind the bold returns lies a dependence on a volatile commodity—Bitcoin.

If the market holds above Power Systems’ breakeven estimate, investors may be rewarded handsomely.

If not, the fusion of gas and crypto might burn more than just excess fuel.