Bitcoin Hash Rate Migration from Kazakhstan: Why Miners Are Leaving and Where They're Going

Bitcoin’s global hash rate hit 1.041 billion terahashes per second in September 2025 - a record high. But behind that number is a quiet revolution: miners are pulling out of Kazakhstan, one of the world’s biggest mining hubs, and moving elsewhere. It’s not a collapse. It’s a relocation. And it’s changing the entire landscape of Bitcoin mining.

How Kazakhstan Became a Mining Giant

Kazakhstan didn’t start as a crypto powerhouse. In 2018, it was mostly known for its cheap coal power and Soviet-era infrastructure left over from decades of state-run energy production. When China cracked down on Bitcoin mining in 2021, thousands of machines packed up and crossed the border into Kazakhstan. The country had surplus electricity, low taxes, and no real rules - perfect for miners looking for a quick, cheap place to run their rigs.

By 2021, Kazakhstan was second only to China in Bitcoin hash rate. The town of Ekibastuz became a mining hotspot, with warehouses full of ASICs humming day and night. At its peak, Bitcoin mining used up nearly 7% of the entire country’s electricity. That’s more than all the homes in Almaty combined.

The Grid Cracked Under the Load

Then came the blackouts.

In early 2022, winter hit hard. Power plants couldn’t keep up. Citizens in major cities lost heat. Schools closed. Hospitals ran on generators. The public blamed the miners. Protests erupted. The government didn’t wait for a vote - it cut off mining operations from the national grid overnight.

It wasn’t a ban. It was a reset. Miners had to either shut down or find their own power. Some switched to diesel generators. Others moved. A few stayed, paying premium rates for private power deals. But the era of free, unlimited electricity was over.

The Exodus Begins - Canaan’s Exit

The real signal came in July 2025, when Canaan, one of the world’s largest Bitcoin miner manufacturers, officially shut down its operations in Kazakhstan. The company’s hash rate dropped from 6.67 EH/s in May to 5.56 EH/s by July. That’s a 17% drop in just two months.

Canaan didn’t just turn off machines. They physically moved them. Roughly half of the offline units were relocated to other sites, with the rest scheduled to come back online by August. The company didn’t hide the reason: Kazakhstan’s energy instability and regulatory uncertainty made it too risky to keep operating there.

This wasn’t an isolated move. Other miners, especially those backed by institutional investors, started asking the same question: Why risk losing power mid-block?

Where Are the Miners Going?

The United States is the clear winner. As of late 2025, the U.S. controls 35.4% of the global Bitcoin hash rate - up from 28% in 2023. Texas, Georgia, and Kentucky are now the new mining belts. Why? Reliable power grids, clear regulations, and tax incentives.

Canada is second in North America, with 9.6% of the hash rate. Its stable hydroelectric grid and proximity to U.S. markets make it a natural fit. Russia still holds 4.7%, mostly in Siberia, where cold weather keeps cooling costs low. China, despite its 2021 ban, has quietly rebuilt operations in places like Iran and Central Asia, holding 12% globally.

Kazakhstan still holds 14.8% - but that’s down from over 18% in 2021. The gap between the U.S. and Kazakhstan is widening, not closing.

Kazakhstan’s Last-Ditch Efforts

The Kazakh government isn’t giving up. In early 2025, they rolled out a new 70/30 energy rule: 70% of new thermal power capacity goes to the national grid. Only 30% is allowed for crypto mining. That’s a hard cap. No more free rides.

They’re also cracking down on illegal transactions. In Q1 2025 alone, Kazakh banks blocked 15,800 unauthorized crypto transfers worth $3.07 million. That’s not just enforcement - it’s control.

Some miners still see opportunity. The country has low labor costs, and its lawmakers want to tax mining profits to fund infrastructure. But trust is broken. Miners don’t want to be the ones stuck when the next blackout hits.

Why Hash Rate Migration Matters

This isn’t just about where machines are plugged in. It’s about Bitcoin’s security.

The higher the global hash rate, the harder it is to attack the network. Even with Kazakhstan’s decline, Bitcoin’s hash rate keeps climbing - because miners are moving, not quitting. The network is adapting.

Institutional investors are watching closely. A growing hash rate signals confidence in Bitcoin’s long-term viability. Historically, when hash rate surges, prices follow - often by 3 to 6 months. The migration from Kazakhstan isn’t a sign of weakness. It’s a sign of maturation.

Miners aren’t running away from Bitcoin. They’re running toward stability.

The Bigger Picture: Geopolitics and Mining

Bitcoin mining is no longer just a tech story. It’s a geopolitical one.

Countries now see hash rate as a form of economic leverage. The U.S. is using mining to absorb excess renewable energy. Canada is turning surplus hydro into digital gold. Even Iran, under sanctions, uses mining to bypass financial restrictions.

Kazakhstan wants to be part of this. But it’s playing catch-up. Other countries built clear rules first. Kazakhstan waited until the grid was overloaded to act. Now, miners are skeptical.

The lesson? If you want mining, you need infrastructure - not just cheap power. You need predictability - not last-minute bans. You need trust - not temporary permits.

What’s Next for Kazakhstan?

Kazakhstan won’t disappear from the mining map. It still has the power, the land, and the will. But its role is changing. It’s no longer the go-to destination for new miners. It’s becoming a niche player - one that survives only if it delivers consistent, reliable power.

Some miners are testing the waters again. Smaller operators, with their own generators or solar setups, are returning. But the big players? They’ve moved on.

The real question isn’t whether Kazakhstan can recover. It’s whether it can rebuild trust fast enough to attract the next wave of institutional capital.

What This Means for Bitcoin Holders

If you own Bitcoin, this migration should reassure you - not scare you.

The network’s hash rate keeps hitting new highs. The miners aren’t leaving Bitcoin. They’re just choosing better homes. That means the network is getting more secure, not less.

It also means mining is becoming more professional. The days of fly-by-night operations in unstable regions are ending. The industry is consolidating around countries with strong infrastructure and clear rules.

That’s good for Bitcoin. It’s not a crisis. It’s evolution.

Bitcoin doesn’t need Kazakhstan. But it does need stability. And right now, that stability is found elsewhere.