CoinDesk Podcast Network THE MINING POD: The Rise and Fall of Bitcoin Mining in Kazakhstan w/ Didar Bekbau
Apr 15, 2025
Didar Bekbau, CEO of Xive, dives deep into the rise and fall of Bitcoin mining in Kazakhstan. Once the world’s second-largest hub, new challenges have emerged since the 2021 China mining ban. Didar discusses how outdated Soviet-era infrastructure led to power shortages and soaring taxes that forced miners to flee to Russia and the US. He also highlights the potential for Kazakhstan to reclaim its status with strategic planning and investment, as well as the ongoing impacts of geopolitical events on energy markets.
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Kazakhstan Mining Collapse Anecdote
- Kazakhstan's Bitcoin mining industry has collapsed, with operations now at 10% of previous scale.
- Major mining firms closed or relocated to US and Russia due to instability and unprofitability.
Kazakhstan Mining Peak and Decline
- Kazakhstan peaked near 1,500 MW of Bitcoin mining at 18% global hash rate in 2021.
- Current active mining capacity has shrunk drastically to about 300-400 MW.
Infrastructure Limits Mining Growth
- Kazakhstan's aging power infrastructure limits electricity supply growth.
- Government restricted miner access due to power shortages and public opposition.