Mining, Opinion

Chinese Bitcoin Miners are Racing to Set up Shop in Kazakhstan

July 13, 2021

As a regulatory hammer comes down in former leading global hashrate region China, other countries are moving quickly to snatch up first place. Bordering northwestern China and already home to significant hashpower, Kazakhstan is expected to get a serious influx of miners exiting China in light of the sweeping anti-crypto regulations. This begs the question: could Kazakhstan be the world’s next major mining hotspot?

Movement into Kazakhstan

Many major, internationally reputable Bitcoin companies have frantically moved to invest in Kazakhstan in order to secure hosting opportunities for their clients. Chinese mining hardware manufacturer Canaan Inc. is a prime example, opening an after-sales service center for local clients to augment its recently established Bitcoin mining operations.

Another firm moving operations to Kazakhstan is Bit Mining Ltd., who recently transitioned 2,600 machines from their existing facilities in China. This follows their announcement in May that they would be investing $9 million into the development of a 100 MW cryptocurrency mining data center in Kazakhstan.

With a huge shutdown of mining operations in China, it is expected that more companies will follow in suit of these market leaders to shift their operations to Kazakhstan. Wattum has an established presence in this mining hotspot and actively manage established facilities within Kazakhstan, ready to offer hosting to miners urgently looking for new accomodations.

Wattum & Enegix’s Facility

Enegix’s facility is one of the largest data centers in the world, with ongoing plans to expand the center by 500 MW in 2021. Wattum moved proactively to build this partnership, recognizing early on that Kazakhstan is a strategic region in which to build a strong presence. We know our equipment owners value security, so video surveillance and armed security have been employed to protect the high-voltage infrastructure. The facility is fully compliant with national regulations and is optimized for safe mining operations. It boasts key benefits such as on-site ASIC repairs, 24/7 personnel accommodation, and low cooling costs due to the region's cool climate. Wattum customers can now take advantage of this state-of-the-art facility and its premier hosting opportunities.

Why Kazakhstan?

The hype around Kazakhstan in the crypto community may have you wondering why companies are so eager to move their mining operations into the country. Kazakhstan is home to a 4,000 MW energy surplus and, more importantly, a cryptocurrency-friendly government. The local government has proven their enthusiasm by announcing a roadmap with the goal of stimulating the domestic crypto and blockchain industries.

The biggest advantage comes in the form of Kazakhstan's internationally competitive energy prices, which will make huge impacts on your bottom line in such an energy intensive industry. Additional savings are realized through low labour, management, and repair costs. Beyond this, the country is based in an ideal shipping location, offering import taxes as low as 0% and a low 12% import value added tax (VAT).

If you’re interested in mining in Kazakhstan, contact us to learn more from our expert team about hosting opportunities in this region. We also offer services for building data centers in Kazakhstan through our rebranded venture with Colobuilders, which has applied over 30 years of data center construction and operational experience to the Wattum Buildout Division, as well as through our partnership with data center giant Enegix, currently operating one of the largest Bitcoin data centers in the world. Hosting availability in Kazakhstan is filling up fast: get started today!

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