There has been a lot of buzz in the Bitcoin mining community in regards to Kazakhstan, but how do investors know that it is a long-term, strategic location? This can be proven by the many large industry players moving to capitalize on the budding mining opportunities within the region, among the first of which was Wattum Management. The regulatory shutdown within China has led to a decline in capacity within many existing data centers for hosting, however Wattum still has limited space for new miners at our Kazakhstan center.
What Makes Kazakhstan a Strategic Location?
Kazakhstan has all of the makings of a perfect region for hosting your mining equipment. The region boasts low import taxes, an ideal climate for air cooling, and some of the world's cheapest energy prices. The icing on the cake is the nation’s crypto-embracing government, which has developed a roadmap to stimulate the country’s adoption of cryptocurrency and blockchain through local mining operations.
Kazakhstan is also undertaking a new project to allow local banks to process cryptocurrency purchases and enable legal crypto investment services. They will be running a one year pilot project to assess success and further understand potential risks. This illustrates the country’s embrace of digital money and that the crypto-safe environment isn't going anywhere anytime soon.
The government is also implementing an electricity tax levy for local cryptocurrency miners beginning in 2022. This is inspiring confidence in many investors that the government plans on supporting the industry for the long term and will use these funds to grow their economy. This will ensure stability as the government collects revenue, encouraging them to continue providing a supportive environment for Bitcoin miners.Beyond Kazakhstan's political support and low electricity cost that make crypto mining in the region so attractive, they are also working towards a green economy. Kazakhstan’s energy economy is still mainly fossil fuel-based, but the country has considerably ramped up renewable energy sources within the past few years. This includes 40 GW of wind and 40 GW of solar power, giving the green light for future renewables and clean energy implementation.
Given the regulatory turmoil in China, the comfort of knowing that your mining region has a crypto-friendly government is significant. The regulatory environment in Kazakhstan is arguably one of the best in the world in terms of flexibility right now, especially compared to areas within the U.S.
For example, New York has proposed a bill (which has now passed the senate) that would ban cryptocurrency mining in the state. This bill has halted much of the activity within New York and across the country, as firms take cautious approaches to expansion. There is also the Bipartisan Infrastructure Bill, which contains the provisions of the Infrastructure Investment and Jobs Act that has been quickly advancing. This would go beyond cryptocurrency brokers following similar tax rules as stock brokers, and it may involve requiring ‘know your customer’ (KYC) checks and potentially higher tax rates. Although some miners feel more comfortable having their assets in their home country, many are starting to see the benefits of hosting their equipment in a safe location that has a clearer long term outlook in securing your investment.
Major Bitcoin Mining Activity Shows No Signs of Slowing Down
Wattum moved proactively into Kazakhstan in early 2021 through a partnership with Enegix to expand hosting capacity at their data center by 8 MW. The center is fully compliant with local regulations, features on-site ASIC repairs, and offers both on-site and remote personnel accommodations. To give miners further peace of mind, the high-voltage facility is protected by video surveillance and armed security. Wattum also provides clients with 24/7 customer support, routine maintenance and diagnostics, and a minimum 99% equipment uptime - the facility is equipped to meet all of your needs and more.
Wattum has been an advocate for Kazakhstan as a mining region for quite some time; other big names within the industry are finally catching on and making their own moves into the region, growing the local cryptocurrency scene. Bitmain, Canaan, and BIT Mining are three of the largest crypto mining companies in the world that have recently expanded into Kazakhstan. In early June, major cryptocurrency miner provider Canaan moved into Kazakhstan to provide customers with post-purchase support through a service center. Later in the month, they began mining operations in the region using their Avalon mining units.
Bitmain, the prominent Beijing-based crypto rig producer, announced in July that it will be hosting its machines at Enegix’s local Kazakhstan facility - the same facility where Wattum is currently offering hosting. Shenzhen-based Bitcoin mining firm BIT Mining also announced in July that it would be purchasing 2,500 miners for deployment in Kazakhstan. These add to their existing 3,819 machines already in operation within the country, and another 4,033 on the way, at the time of writing.
Each of these expansions further proves Kazakhstan's position as a true Bitcoin mining hotspot, and it isn't even close to reaching its full potential yet. Confidence in the region can be easily confirmed by the high expenditure made by various firms to set up local infrastructure.
It’s Time to Move Fast
As Kazakhstan’s profile rises within the Bitcoin mining community, more miners are rushing to occupy available data centers, resulting in limited remaining hosting space. The increased popularity of the region means that more and more data centers will slowly open up in order to expand local hosting, however Wattum is currently one of the only providers with excess capacity. Wattum’s facility in Kazakhstan boasts 180MW and, due to economies of scale, we are able to provide quick and effective service with our 24/7 on-site support staff.
As prominent crypto industry names move their operations into Kazakhstan, Wattum remains one of the first to recognize this opportunity and create space for our clients. Contact us today to learn more about hosting with Wattum before all of our spaces fill up – this opportunity won’t last long.