{"id":54062,"date":"2021-12-03T16:06:47","date_gmt":"2021-12-03T14:06:47","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=54062"},"modified":"2025-09-03T18:21:54","modified_gmt":"2025-09-03T15:21:54","slug":"miners-begin-leaving-kazakhstan-amid-power-supply-problems","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/miners-begin-leaving-kazakhstan-amid-power-supply-problems\/","title":{"rendered":"Miners begin leaving Kazakhstan amid power-supply problems"},"content":{"rendered":"<p>BitFuFu, a mining company, shut down the devices located in Kazakhstan due to <a href=\\\"https:\/\/t.me\/bitfufu\/12520\\\">power-supply problems<\/a> in the country and <a href=\\\"https:\/\/t.me\/bitfufu\/12887\\\">began relocating equipment to the United States<\/a>. Other industry players have decided on this step as well.<\/p>\n<p>The main problem was the introduction by local authorities of power-supply rationing for miners due to an looming energy crisis, BitFuFu noted. Because of equipment downtime, the company decided to relocate it. In a conversation with <a href=\\\"https:\/\/www.coindesk.com\/policy\/2021\/12\/02\/bitmain-backed-bitfufu-abandons-mining-rigs-in-kazakhstan-due-to-power-rationing\/\\\">CoinDesk<\/a> representatives of the firm confirmed that the miners have already been shipped to the United States.<\/p>\n<p>According to the Financial Times, the number of BitFuFu devices placed in Kazakhstan reached <a href=\"https:\/\/u1f987.com\/en\/news\/russia-receives-applications-to-host-1-8-million-miners-after-china-bans-bitcoin-mining\">180 000<\/a>.<\/p>\n<p>Earlier, mining firm Xive shut down a data center housing 2,500 devices in the southern part of Kazakhstan also due to power-supply constraints. As cofounder Didar Bekbau told CoinDesk, many industry players are looking for relocation sites.<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cObviously, mining in southern Kazakhstan is no longer possible,\u201d he said.<\/p>\n<\/blockquote>\n<p>According to Bekbau, many have already started moving equipment to Russia and the United States.<\/p>\n<figure class=\\\"wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter\\\">\n<div class=\\\"wp-block-embed__wrapper\\\">\n<blockquote class=\\\"twitter-tweet\\\" data-width=\\\"500\\\" data-dnt=\\\"true\\\">\n<p lang=\\\"en\\\" dir=\\\"ltr\\\">Little sad to shut down our mining farm in south KZ. Last container is ready to be sent. So much work, people, hopes are ruined. Country risk played out <a href=\\\"https:\/\/t.co\/J8ZMg6GeUI\\\">pic.twitter.com\/J8ZMg6GeUI<\/a><\/p>\n<p>\u2014 Didar (@didar_bekbau) <a href=\\\"https:\/\/twitter.com\/didar_bekbau\/status\/1463332301518127104?ref_src=twsrc%5Etfw\\\">November 24, 2021<\/a><\/p><\/blockquote>\n<p><script async src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script>\n<\/div>\n<\/figure>\n<p>The Kazakh Blockchain Technology Association told ForkLog that one reason for Xive&#8217;s shutdown in the country is its geographic location:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cIndeed, the south of Kazakhstan is home to several large cities with high populations, which in turn demand a substantial share of the country&#8217;s electricity.\u201d<\/p>\n<\/blockquote>\n<p>Representatives of the association also noted that at present, due to electricity shortages in the country it is quite difficult to set up new mining farms.<\/p>\n<p>Alan Dordzhiev, head of the National Association of Blockchain and Data-Center Industry of Kazakhstan, confirmed that many miners are leaving the country. This is especially true for farms located in the south:<\/p>\n<blockquote class=\\\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\\\">\n<p>\u201cSome are experiencing power-supply outages and are deciding to move somewhere else. Historically, the south has been an energy-deficit region.\u201d<\/p>\n<\/blockquote>\n<p>As reported in 2021, many cryptocurrency mining companies <a href=\"https:\/\/u1f987.com\/en\/news\/chinese-asic-miner-manufacturers-to-boost-shipments-to-kazakhstan-and-canada\">relocated to Kazakhstan<\/a> in response to the tightening rhetoric of Chinese authorities. As a result, the country became <a href=\"https:\/\/u1f987.com\/en\/news\/us-takes-the-lead-in-bitcoin-hashrate-share\">one of the leaders in compute power<\/a> in the Bitcoin network.<\/p>\n<p>In June, Kassym-Jomart Tokayev signed a law providing for the introduction of <a href=\"https:\/\/u1f987.com\/en\/news\/kazakhstan-president-signs-law-introducing-an-additional-mining-fee\">additional fee for mining<\/a>.<\/p>\n<p>In September authorities stated rising energy consumption and its possible deficit. In this regard, Energy Minister Magzum Mirzagaliev proposed <a href=\"https:\/\/u1f987.com\/en\/news\/kazakhstan-authorities-propose-restricting-miners-to-address-electricity-shortages\">to limit the energy consumption of mining data centers<\/a>.<\/p>\n<p>In November Kassym-Jomart Tokayev ordered to ensure <a href=\"https:\/\/u1f987.com\/en\/news\/kazakhstan-president-orders-immediate-regulation-of-cryptocurrency-mining\">urgent legislative regulation of mining<\/a> to combat the \u201cgrey\u201d miners. The authorities also proposed <a href=\"https:\/\/u1f987.com\/en\/news\/kazakhstan-proposes-criteria-for-bitcoin-mining\">to spell out criteria<\/a> for activities related to cryptocurrency mining.<\/p>\n<p>According to the National Association of Blockchain and Data Center Industry, as of October legal players in the mining sector contributed no less than <a href=\"https:\/\/u1f987.com\/en\/news\/kazakhstan-estimates-annual-budget-receipts-from-legal-miners\">98 billion tenge<\/a> ($230 million) to the economy per year.<\/p>\n<p>Read ForkLog\u2019s Bitcoin news on our Telegram channel \u2014 crypto news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BitFuFu, a mining company, shut down devices located in Kazakhstan due to power-supply problems in the country and began relocating equipment to the United States. Other industry players have decided on this step as well.<\/p>\n","protected":false},"author":1,"featured_media":54063,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1137,153],"class_list":["post-54062","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-cryptocurrency-mining","tag-kazakhstan"],"aioseo_notices":[],"amp_enabled":true,"views":"22","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54062","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=54062"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54062\/revisions"}],"predecessor-version":[{"id":54064,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/54062\/revisions\/54064"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/54063"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=54062"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=54062"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=54062"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}