Why Bitcoin Hash Rate Is Moving Out of Kazakhstan in 2025

Oct, 13 2025

Bitcoin hash rate migration from Kazakhstan is the ongoing shift of computational mining power away from Kazakhstan’s mining farms toward jurisdictions with more stable energy supplies and clearer regulatory frameworks. The trend accelerated in early 2025, reshaping how the global Bitcoin network allocates its hash power.

Background: How Kazakhstan Became a Mining Magnet

Kazakhstan entered the crypto mining scene in 2018, leveraging cheap coal‑derived electricity and surplus capacity left from the Soviet era. By 2021, the country held the world’s second‑largest share of Bitcoin hash rate, riding a wave of inexpensive power that attracted Chinese and Western operators alike.

During the 2021 "hashrate goldrush," miners consumed roughly 7% of the nation’s total electricity, crowding out residential demand and straining the national grid. Protests erupted as blackouts became common, prompting the government to temporarily cut miners off from the grid.

Key Drivers Behind the 2025 Migration

• Regulatory pressure: New policies reserve only 30% of fresh thermal‑plant capacity for crypto, leaving 70% for the public grid. Enforcement agencies blocked over 15,800 unauthorized crypto transactions in Q12025, signaling tighter oversight.
• Grid instability: Repeated power surges and blackouts made reliable operation impossible for large‑scale farms.
• Energy cost volatility: While coal remains cheap, market reforms and carbon‑pricing discussions threaten long‑term price certainty.
• Geopolitical competition: Mining hubs in North America and Canada now offer stable subsidies and clearer legal pathways, attracting operators looking for longevity.

Case Study: Canaan’s Exit

Canaan, a leading China‑based miner manufacturer, announced in July2025 that it would withdraw its remaining Kazakhstan assets. The company’s reported hashrate fell from 6.67EH/s in May2025 to 5.56EH/s after the exit, directly tying the decline to the Kazakhstan departure. Canaan mined 89BTC in July2025, a sharp dip from previous months, and began relocating machines to a mixed‑region strategy that includes Texas and Siberia.

Global Hash Rate Landscape in 2025

The overall network hash rate hit 1.041billionTH/s on September72025-a 48.2% jump from the previous year-showing that the global mining ecosystem remains robust despite regional migrations.

Implications for the Bitcoin Network

Hash rate growth strengthens Bitcoin’s security and is often viewed as a leading indicator of institutional confidence. The shift away from Kazakhstan does not diminish total network power; instead, it redistributes capacity to regions with more resilient energy schemes. This redistribution can reduce the risk of regional grid failures causing widespread mining downtime.

Analysts from AInvest note that the migration mirrors earlier geopolitical shifts, such as China’s 2021 crackdown, and may actually smoothen concentration risk. By spreading compute across multiple jurisdictions, the network gains redundancy-an asset during geopolitical tensions or natural disasters.

What Remaining Miners in Kazakhstan Are Doing

Not all operators are leaving. Those who stay are adapting in three main ways:

1. Negotiating dedicated power contracts that guarantee a fixed portion of generated electricity.
2. Investing in on‑site renewable add‑ons-solar panels and wind turbines-to offset grid dependency.
3. Lobbying for clearer tax treatment and faster licensing to reduce operational uncertainty.

These steps aim to preserve Kazakhstan’s ~14% share while aligning with the government’s 70/30 energy allocation plan.

Future Outlook: Will the Migration Continue?

Forecasts suggest a selective but steady outflow. As long as the United States and Canada continue to offer stable power and regulatory certainty, large‑scale operators will likely favor those hubs. However, Kazakhstan’s cheap legacy energy and the government’s willingness to formalize mining agreements could keep a core of small‑to‑mid‑size farms alive.

Institutional investors are now treating hash rate location as a risk factor, similar to data‑center geography in cloud computing. Diversifying across multiple countries is becoming a best‑practice, ensuring that a single policy change won’t cripple a portfolio’s mining exposure.

Key Takeaways

• The 2025 Bitcoin hash rate migration reflects a blend of regulatory tightening, grid instability, and competitive incentives abroad.
• Kazakhstan still holds a significant 14.8% of global hash rate, but its lead over the United States has narrowed sharply.
• Major players like Canaan are exiting, but smaller operators are staying by securing dedicated power and embracing renewables.
• Global network security remains strong; the shift simply reallocates power to more stable jurisdictions.
• Future mining strategies will likely emphasize geographic diversification and regulatory clarity.