CryptoCrypto CurrencyCrypto Mining News

World’s 2nd largest mining hotspot Kazakhstan extends Cryptocurrency Miners’ Power Cuts

Cryptocurrency prices today

The local utility has prolonged power cuts for miners, so cryptocurrency farms in Kazakhstan will stay unplugged until February 7. The corporation cites persistent electrical supply issues as the primary reason for the move, which was set to expire at the end of January.

Kazakhstan’s mining facilities 

Kazakhstan’s data centres permitted to manufacture digital currencies will be unable to operate at least until next Monday, Feb. 7, after the country’s power distribution utility extended previously implemented supply limitations for another week.

In a notification obtained by Forklog, the state-owned Kazakhstan Electricity Grid Operating Company (KEGOC) alerted mining companies of the ongoing limitations.

The restriction was originally enforced on January 24, when mining fields were forced to close until January 31. Almost 70 businesses were impacted by power outages caused by winter shortages. Southern Kazakhstan and neighbouring countries experienced blackouts as a result of a broken electricity line. The mining companies are waiting for clarity from the Ministry of Energy before planning their future activities in Kazakhstan, according to Alan Dorjiyev, the chairman of Kazakhstan’s National Association of Blockchain and Data Center Industry. His group brings together hundreds of registered mining companies.

Since last year, when it became a major mining hotspot after China’s crackdown on the sector, Kazakhstan has been grappling with a rising power shortfall.

The flood of miners, which raised the country’s share of global Bitcoin hashrate to more than 18%, has been blamed for the power outages.

Dorjiyev noted in January that miners have become an excuse for KEGOC and the Energy Ministry, although the difficulties are actually caused by old infrastructure and insufficient generation capacity. Kazakhstan keeps power costs restricted, and the industry has been suffering from a lack of investment.

Kazakhstan – 2nd largest mining hotspot  

Power outages have already pushed several mining companies to depart the Central Asian country. To address the problem, Kazakhstan expanded its purchases of power from the Russian Federation.

The government in Nur-Sultan also intends to resurrect a decade-old idea to build a nuclear power plant.

Rising energy prices, particularly for fuels like natural gas, triggered widespread demonstrations in Kazakhstan in the opening few days of the year. To quell the civil unrest, the authorities shut down banks and limited internet access. The crypto mining business was impacted by the instability, but as the situation began to normalise, miners resumed their activities until they were hit by the current power outages.

Related Articles

Binance has Recovered $5.8 Million of Stolen Funds From Axie Infinity Exploit

Mridul Srivastava

The Binance-Gulf Energy Venture: Ushering in a New Era of Crypto-Exchange in Thailand

Mridul Srivastava

Tesla CEO Elon Musk believes crypto will empower the people over governments

Mridul Srivastava