SAI.TECH curtails expansion project in Kazakhstan

The global energy-efficient bitcoin mining operator made this decision amid national turbulence in the country and uncertainty about the stability of operations and likely costs.

Singapore-based mining company SAI.TECH said it was reviewing its operations in Kazakhstan. In 2021, SAI launched an expansion project in the country, which has become the second-largest bitcoin maker in the world. Specifically, last July, the company concluded agreements with Better Tech and E2M and began a two-stage cryptocurrency mining operation.

The first 15 MW stage started in August 2021 and is currently ongoing. The parties to the agreement decided not to conduct the second stage of the 90 MW capacity. The main reason for this decision is the alarming reports from hosting customers and energy partners regarding the stability of operations and the size of costs.

The concern was caused by the national disturbances in Kazakhstan in early 2022. At that time, the project participants agreed to suspend operations temporarily. After a detailed discussion of force majeure and dim prospects for the future, the parties to the agreements said they would not commit to the project’s second stage. The first stage of the 15 MW operation continues in accordance with the initial agreements.

In 2021, after the ban on mining by the Chinese authorities, Kazakhstan became extremely popular among miners from China and other countries. But the Kazakh government decided to use harsh measures to regulate the crypto sector, including the forced shutdown of several farms and the requirement to regularly provide detailed reports on the companies’ activities. Such circumstances, together with the start of the mass riots, have significantly worsened conditions for local miners, who are forced to reconsider the feasibility of their projects in this country.