Crypto Miner Xive Shuts Down South Kazakhstan Mine Due to Electricity Woes

Mining in south Kazakhstan is no longer possible, Xive co-founder Didar Bekbau said.

AccessTimeIconNov 24, 2021 at 5:48 a.m. UTC
Updated May 11, 2023 at 5:47 p.m. UTC

Crypto mining company Xive shut down a 2,500-rig mine in South Kazakhstan due to lack of sufficient electricity supply from the national grid, co-founder Didar Bekbau told CoinDesk on Wednesday.

  • Kazakhstan has been grappling with electricity shortages, partly caused by an influx of crypto miners from China. The southern part of the country is particularly vulnerable as the region lacks abundant electricity generating plants and the national grid cannot reliably transfer electricity from the energy-rich northern region.
  • Crypto miners, like Xive and Enegix, have been facing electricity issues since September due to rationing from KEGOC, the national grid operator. KEGOC did not immediately respond to a request for comment.
  • Xive is preparing a new site for the over 2,500 machines, but “it is clear that mining in south Kazakhstan is not possible anymore,” Bekbau told CoinDesk.
  • Other miners in south Kazakhstan are also looking for hosting sites for moving their machines but there are “no options” left in the country,” he said. Some have found hosts for their mines in Russia and the U.S., he added.
  • Last month, the Ministry of Energy released a draft regulation that would cap the buildout of new mines to 100 megawatts. The ministry later said that they would not restrict electricity to lawful mines, as long as it does not jeopardize the national grid.
  • Recently, the government said it wants to encourage crypto miners to develop independent renewable energy capacity. The industry hopes that after Kazakhstan expands its renewable electricity capacity in the next one-two years, the limit might change, Sapar Akhmetov, chairman of the board of the Kazakhstan Association of Blockchain Technology told CoinDesk.
  • As of August, Kazakhstan is the world’s second-largest crypto mining country after the U.S., according to data from the Bitcoin Electricity Consumption Index by the Center for Alternative Finance at the University of Cambridge.
  • Bekbau tweeted a video early on Nov. 24 of the last rigs being moved out of the mine.
  • Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
    Big Tech Comes to Small Town: A Bitcoin Mining Story in Spur
  • What's the Biggest Misconception People Have About Bitcoin Mining?
    What's the Biggest Misconception People Have About Bitcoin Mining?
  • What You Need to Know About the Bitcoin Halving
    What You Need to Know About the Bitcoin Halving
  • Why Bitcoin Miners Have Flocked to Texas
    Why Bitcoin Miners Have Flocked to Texas
  • Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Eliza Gkritsi

    Eliza Gkritsi is a CoinDesk contributor focused on the intersection of crypto and AI.