The Mining Pod | Bitcoin Mining News The Rise and Fall of Bitcoin Mining in Kazakhstan w/ Didar Bekbau
Apr 15, 2025
Didar Bekbau, CEO of Xive, dives deep into Kazakhstan’s Bitcoin mining landscape, which soared to 18% of global hashrate post-China's mining ban. He discusses the devastating impacts of outdated Soviet-era infrastructure and rising electricity taxes, forcing miners to flee to Russia and the US. Didar also highlights the potential for a mining revival in Kazakhstan through strategic investment and planning. The conversation reveals the intricate balance between energy supply and the demands of the mining industry amidst ongoing regulatory challenges.
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Kazakhstan Mining Industry Collapse
- Didar Bekbau described Kazakhstan's Bitcoin mining industry as dying with approximately 90% of machines moved out.
- Some major operations shut down, while Genesis Digital Assets (GDA) continues mining by owning its power plant.
Mining Peak & Decline Explained
- Kazakhstan's Bitcoin mining peaked at about 1500MW in 2021 before government limited electricity supply.
- Mining capacity now operates at roughly 300-400MW due to electricity restrictions and tax hikes.
Infrastructure Limits Mining Growth
- The main reason for mining decline was Kazakhstan's limited and aging electricity generation infrastructure.
- Government prioritized public electricity needs, restricted miners and imposed extra taxes due to power deficits.