• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia
Bitcoin

Kazakhstan welcomed the Bitcoin miners that China banned. Now an energy crisis is forcing some miners to relocate—again

Grady McGregor
By
Grady McGregor
Grady McGregor
Down Arrow Button Icon
Grady McGregor
By
Grady McGregor
Grady McGregor
Down Arrow Button Icon
November 24, 2021, 5:31 AM ET
Add Fortune on Google for similar content.

On Wednesday, crypto mining firm Xive announced that it is moving a crypto mining farm out of southern Kazakhstan because of electricity shortages.

“Sad to shut down our mining farm in south [Kazakhstan],” Xive cofounder Didar Bekbau, wrote in a tweet, tying the decision to the “country risk” of operating a crypto mining farm in the southern part of the central Asian nation.

Bekbau told CoinDesk that southern Kazakhstan is no longer a viable place for crypto mining farms owing to electricity shortages and a national grid that makes it hard to transfer power from energy-rich areas in the north to more energy scarce regions in the south. Bekbau did not say if he was moving out of the country entirely but claimed that some crypto mining operations are moving from Kazakhstan to places like Russia and the U.S. because of the lack of consistent power. Xive did not immediately respond to Fortune’s request for comment.

Currently, Kazakhstan ranks second behind the U.S. in global Bitcoin mining, accounting for 18.1% of the global Bitcoin mining hashrate, up from 8.8% in June, according to the Cambridge Centre for Alternative Finance. Hashrate measures the computational power in crypto mining.

Miners flocked to Kazakhstan after nearby China banned crypto mining in May. Kazakhstan welcomed China’s cast-off miners with open arms. Since 2019, Kazakhstan has invested hundreds of millions of dollars to support crypto mining operations, believing that its cheap and abundant supply of fossil fuels—essential for mining—could lure the industry and unlock a new source of government revenue. A government report in October estimated that taxes from crypto mining farms could contribute $1.5 billion in government revenue in the next five years.

But the mining boom has strained Kazakhstan’s energy supply, which is largely powered by coal production in the northern part of the country. Kazakhstan has faced rolling blackouts in different parts of the country since July. In late October, Russian state-controlled energy firm Inter RAO announced it would export energy from Russia to Kazakhstan to shore up the nation’s energy supply to prevent severe power shortages during Kazakhstan’s cold winter when more energy is needed to heat buildings and homes.

Kazakh lawmakers, meanwhile, have blamed energy shortages on crypto mining farms. Kazakhstan’s first deputy energy minister Murat Zhurebekov said in a press conference in early November that crypto mining had created an 8% surge in energy demand on the national grid this year. Usually, electricity demand increases by 1% to 2% each year, he said.

But Kazakhstan has been careful to appear friendly toward crypto mining despite the burden the industry has placed on its energy grid; officials are pushing for more regulations of the sector as opposed to a complete ban.

Kazakh officials say that gray, or illegal, crypto mining operations are the real root of Kazakhstan’s energy woes. Kazakhstan’s government estimates that illegal mining farms may be consuming as much as twice the amount of electricity as registered farms.

“Kazakhstan is not going to just watch illegal miners consume electricity and contribute to the shortage,” Zhurebekov said in the press conference.

The unregulated farms have also meant that the government has thus far seen little benefit from the mining boom.

“We are the No. 2 country in the world for cryptocurrency [Bitcoin] mining, and we practically do not see financial returns,” Kazakhstan President Kassym-Jomart Tokayev said in a speech on Friday.

Still, Kazakhstan seems committed to ensuring its bet on crypto mining will eventually pay off. Tokayev said at a meeting on Friday that the government will likely need to construct nuclear energy plants—an unpopular concept in the country—to shore up the nation’s power supply in the long term.

Subscribe to Fortune Daily to get essential business stories delivered straight to your inbox each morning.

About the Author
Grady McGregor
By Grady McGregor
LinkedIn iconTwitter icon
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

Asia’s defense boom is rewiring the global arms supply chain
Commentaryarms, weapons, and defense
Asia’s defense boom is rewiring the global arms supply chain
By Chris OberoiJune 24, 2026
33 minutes ago
Young couple standing in a brightly lit home
Real EstateHousing
A big look at the state of housing in America: Boomers won’t sell, millennials can’t buy, and Gen Z gets to watch the whole thing sort itself out
By Tristan BoveJune 24, 2026
35 minutes ago
Wind turbines on yellow grass
Environmentwind power
California threatens to hit Trump with lawsuit if he doesn’t revive massive wind farm project off central coast
By Jennifer McDermott and The Associated PressJune 24, 2026
42 minutes ago
How ‘Ozempic face’ is pushing Gen X, already the biggest Botox and filler consumers, to the facelift table a decade early
HealthGen X
How ‘Ozempic face’ is pushing Gen X, already the biggest Botox and filler consumers, to the facelift table a decade early
By Mia OsmonbekovJune 24, 2026
51 minutes ago
Why Zohran Mamdani’s big night as the Democratic party’s new kingmaker matters for every Fortune 500 CEO in every city and state
PoliticsPolitics
Why Zohran Mamdani’s big night as the Democratic party’s new kingmaker matters for every Fortune 500 CEO in every city and state
By Catherina GioinoJune 24, 2026
52 minutes ago
The 4 Best Zinc Supplements of 2026: Expert Tested
HealthDietary Supplements
The 4 Best Zinc Supplements of 2026: Expert Tested
By Emily PharesJune 24, 2026
1 hour ago

Most Popular

After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
Success
After forcing workers back to the office, Goldman Sachs and JPMorgan Chase are now letting their staff work remotely—but only for the World Cup
By Orianna Rosa RoyleJune 23, 2026
1 day ago
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
Economy
The Pentagon said Iran War costs $29 billion, but the real cost is closer to $200 billion—and counting
By Jacqueline MunisJune 24, 2026
15 hours ago
Current price of oil as of June 23, 2026
Personal Finance
Current price of oil as of June 23, 2026
By Joseph HostetlerJune 23, 2026
1 day ago
Current price of gold as of June 23, 2026
Personal Finance
Current price of gold as of June 23, 2026
By Danny BakstJune 23, 2026
1 day ago
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
Real Estate
Texas and Charlotte used to build huge McMansions—now they're copying the California design tricks they once mocked
By Sydney LakeJune 22, 2026
2 days ago
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
Banking
Markets tumble worldwide as Fed resets expectations: $400 billion wiped off SpaceX stock
By Jim EdwardsJune 23, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.