Back in 2021, Kazakhstan was the second-largest Bitcoin mining hub in the world. Mines in Ekibastuz ran nonstop, powered by cheap coal-generated electricity left over from Soviet-era infrastructure. Miners flocked there because energy was cheap, regulations were loose, and the grid had spare capacity. But by 2025, that story had flipped. Miners started packing up. Machines were moved out. Hash rate dropped. And Kazakhstan’s grip on the global Bitcoin network began slipping.
Why Kazakhstan Lost Its Mining Edge
Kazakhstan didn’t lose Bitcoin mining because miners suddenly got tired of it. They left because the country couldn’t keep up. As mining operations exploded, electricity demand surged. By 2021, crypto miners were using nearly 7% of the entire national power supply. That’s not a small number-it’s enough to blackout entire neighborhoods. When protests broke out over rolling blackouts affecting hospitals and schools, the government didn’t hesitate. They cut power to mining farms overnight. That wasn’t the first time Kazakhstan had done this. Similar grid cuts happened in 2022 and again in early 2024. Each time, miners scrambled to find backup generators or temporary power deals. But the message was clear: your mining rig isn’t a priority. Your profit isn’t worth the risk to a family’s heater. Even when the grid came back online, trust didn’t. Miners realized they were playing Russian roulette with their machines. One day, the power’s on. The next, it’s gone-no warning, no compensation. And with Bitcoin’s network difficulty climbing every few days, even a few hours of downtime meant lost revenue and missed rewards.The Canaan Exit: A Turning Point
The biggest signal that things had changed came in July 2025, when Canaan, one of the world’s top Bitcoin mining equipment manufacturers, officially shut down its Kazakhstan operations. Canaan had been running over 6.67 EH/s of hash rate there just months before. By July, that number had dropped to 5.56 EH/s. They didn’t just turn off machines-they shipped them out. Canaan didn’t leave because Kazakhstan was expensive. They left because it was unreliable. In the same quarter, they also shut down a struggling site in South Texas. But unlike Texas, where power contracts are clear and grid outages are rare, Kazakhstan offered no guarantees. Canaan reported mining just 89 BTC in July 2025-a number they blamed directly on the Kazakhstan exit. Half of the offline machines were already reinstalled in other countries by August. The rest followed in the next two months. This wasn’t an isolated case. Other miners quietly followed. Some moved to Texas. Others went to Georgia, Paraguay, or even restarted operations in parts of Canada where renewable energy is abundant and regulations are stable. The message from industry insiders? If you can’t count on your power, you can’t count on your profit.Where Did the Hash Rate Go?
The global Bitcoin network didn’t slow down. In fact, it hit a record 1.041 billion terahashes per second in September 2025-up nearly 50% from the year before. So where did all that extra power come from? The United States pulled ahead hard. With over 35% of the global hash rate, the U.S. now dominates Bitcoin mining. Texas leads the pack, thanks to deregulated energy markets and a growing number of data centers repurposed for mining. Georgia, with its cheap hydroelectric power and pro-crypto laws, jumped to the top five. Canada holds steady at 9.6%, and even smaller players like Paraguay and El Salvador are gaining traction. Kazakhstan still holds 14.8% of the global hash rate as of late 2025. That’s a lot-but it’s down from over 18% at its peak. China, after its 2021 ban, is slowly creeping back with state-backed mining farms in Sichuan and Inner Mongolia, now holding 12%. Iran, despite sanctions, still manages 2.3% thanks to subsidized electricity and a black-market mining culture that never fully died. The shift isn’t just geographic-it’s strategic. Miners aren’t just moving machines. They’re moving into places with long-term power contracts, carbon-neutral energy sources, and legal clarity. Kazakhstan’s government is trying to catch up, but it’s playing catch-up with a broken clock.
Kazakhstan’s Attempt to Rebuild
The Kazakh government didn’t just give up. In early 2025, they introduced a new energy policy: 70% of new thermal power plant output goes to the national grid. Only 30% is allowed for crypto mining. That’s a hard cap. It’s meant to protect homes, schools, and hospitals from future mining-induced blackouts. They also started cracking down on illegal transactions. In Q1 2025 alone, Kazakh banks blocked 15,800 unauthorized crypto transfers worth over $3 million. That’s not just about money-it’s about control. The state wants to know who’s mining, where the power is going, and how much tax they owe. Some miners still operate legally under these rules. But the margin for error is razor-thin. A single power spike, a delayed payment to the grid operator, or a regulatory audit can shut you down. For large-scale operators with global operations, that’s not worth the risk.What This Means for Bitcoin
The migration from Kazakhstan isn’t a collapse. It’s a realignment. Bitcoin’s network is stronger than ever. The hash rate keeps climbing, even as miners shift locations. That’s because the network doesn’t depend on any one country. It thrives on decentralization. When miners move from unstable regions to stable ones, the network gets more secure. More distributed hash rate means fewer single points of failure. If Kazakhstan had kept growing unchecked, a single grid failure could’ve crippled a big chunk of the network. Now, that risk is spread across dozens of countries. Institutional investors are watching this closely. Hash rate growth is one of the best leading indicators for Bitcoin’s long-term health. When miners invest in new machines and keep running, it shows they believe in the price. The fact that global hash rate hit record highs in 2025-even as Kazakhstan pulled back-means the market isn’t scared. It’s adapting.
Is Kazakhstan Still a Viable Option?
For small-time miners with backup generators and low overhead? Maybe. There are still operators running rigs in Kazakhstan, especially in rural areas where power is cheaper and oversight is lighter. But for anyone serious about scaling, the answer is no. The risks outweigh the rewards. Even if you get a legal permit, you’re still at the mercy of a grid that’s been proven unreliable. And if the government decides to raise energy fees for miners next year? You’re stuck. No contracts, no recourse. Compare that to Texas, where you can sign a 5-year power agreement with a utility company. Or Georgia, where the government offers tax holidays for mining equipment imports. Or even Canada, where renewable energy credits can offset operational costs. Kazakhstan’s days as a top-tier mining hub are over. That doesn’t mean it’s dead. But it’s no longer the place you choose if you want to build something lasting.What’s Next for Bitcoin Mining?
The future of Bitcoin mining isn’t about finding the cheapest electricity. It’s about finding the most predictable electricity. Miners now prioritize:- Long-term power contracts with fixed rates
- Renewable energy sources to reduce carbon footprint
- Clear, stable regulations that don’t change overnight
- Proximity to data centers with redundant power systems
- Access to technical support and spare parts
Why did Bitcoin miners leave Kazakhstan?
Miners left Kazakhstan because the national grid couldn’t handle the power demand from mining operations. Repeated blackouts, government power cuts, and unpredictable regulations made it too risky to operate there. Even though electricity was cheap, the lack of reliability made long-term mining unviable. Major companies like Canaan officially exited in mid-2025 after losing significant hash rate due to unplanned outages.
How much hash rate did Kazakhstan lose?
Kazakhstan’s share of global Bitcoin hash rate dropped from over 18% at its peak in 2021 to 14.8% by late 2025. While it’s still the third-largest mining country after the U.S. and China, the decline was sharp and steady, especially after mid-2025 when major operators began relocating machines to more stable regions.
Where are miners going instead?
Most miners are moving to the United States-especially Texas-where power is deregulated and reliable. Other top destinations include Georgia (cheap hydro power), Canada (stable regulations), Paraguay (renewable energy), and parts of Europe like Sweden and Iceland. These places offer long-term power contracts, legal clarity, and grid stability.
Is Kazakhstan still mining Bitcoin?
Yes, but on a much smaller scale. Kazakhstan still holds 14.8% of the global hash rate as of late 2025, mostly from smaller, legal operations that comply with the government’s 70/30 power allocation rule. However, large-scale industrial miners have mostly left. The country is no longer a preferred location for serious mining operations.
What’s the impact on Bitcoin’s security?
Bitcoin’s security actually improved. The global hash rate hit a record 1.041 billion TH/s in September 2025, despite Kazakhstan’s decline. When miners move from unstable regions to reliable ones, the network becomes more distributed and harder to attack. Hash rate migration isn’t a threat-it’s a sign of the network adapting and growing stronger.
Could Kazakhstan regain its mining dominance?
It’s unlikely without major infrastructure investment. Kazakhstan would need to build new power plants dedicated to mining, eliminate regulatory uncertainty, and offer long-term contracts to operators. Right now, the government prioritizes grid stability over mining growth. Until that changes, miners will keep choosing places with better reliability and predictability.
