Kazakh Crypto Miners Cut Off From Electricity Supply Until End of January

Kazakhstan's energy problem worsened on Tuesday when a major transmission line was disconnected.

Jan 25, 2022 at 2:32 p.m. UTC
Updated Jan 25, 2022 at 4:34 p.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Kazakhstan crypto miners will have their energy supply cut off from Jan. 24 until the end of the month, three people in the local industry told CoinDesk.

  • A memo from national grid operator KEGOC, dated Jan. 21 and seen by CoinDesk, said that "the planned supply of electricity to persons engaged in digital mining is completely canceled" from Jan. 24 until midnight Jan. 31. Kazakhstan's energy grid has been struggling to meet power demand, especially during the winter. KEGOC said it will consider rolling the limitations back if the energy situation improves.
  • The memo was signed by KEGOC Managing Director for System Services and NES Development Bekhzan Mukatov and sent to 196 power generating, transmission and energy trading companies.
  • Making matters worse is that a major transmission line was disconnected after a "significant emergency imbalance" in the Central Asian power system led to a power surge in Kazakhstan's North-East-South 500-kilovolt (kV) power transmission line, KEGOC said on Tuesday. On the same day, major cities in Kazakhstan and in neighboring Uzbekistan and Kyrgyzstan subsequently suffered power outages, Reuters reported.
  • Kazakhstan was home to about one-fifth of the world's bitcoin mining at the end of August 2021, according to data from the University of Cambridge Center of Alternative Finance. But local miners have been faced with electricity rationing during the current shortage. Some miners are looking overseas to grow their businesses, particularly given that the government has proposed a 100-megawatt energy limit for all new crypto mines.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Trending

1
CoinDesk - Unknown
After the Terra Meltdown: What's Next for Stablecoins?

The largest token collapse in crypto history. So let Luna die.

The largest token collapse in crypto history. So let Luna die.

CoinDesk - Unknown
2
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
3
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
4
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown