By Shelly Melancon (Switzerland)
Kazakhstan became a popular location for bitcoin miners following the ban of the miners from china. However, the country is now experiencing an acute shortage of electricity, which often worsens during winter. Hence, it might be forced to ask crypto miners to leave, even if it will be for the winter season.
BTC Miners And Electricity Supply Problems
The population of BTC miners in the country surged by 600% in April after China’s ban on crypto miners forced them to leave in droves. The central Asian nation now has the third-largest percentage of BTC miners after China and America.
Before April 2021, China’s BTC miners were the largest, followed by the USA. But after April, China’s BTC market dominance fell by as much as 55% since many miners have already identified and have started settling down at their new locations.
Kazakhstan Might Ban Miners In The Same Manner As Iran
Acute shortage of electricity in nations with a large proportion of miners is now a common occurrence. In the first quarter of this year, Iran announced that the increased number of crypto miners caused its citizens’ shortage of electricity supply. Iran authorities had earlier allowed bitcoin mining legally, believing the crypto mining industry will help the country’s ailing economy and trade sanctions.
However, the authorities later discovered that there were more illegal miners than the registered miners, which led to a shortage of electricity supply to residents. Hence, the authorities suspended crypto mining till summer, when its electricity generation usually improves better than in the summer. Now, Kazakhstan might also deploy a similar measure to combat its current shortage of electricity supply.
Also read:Hive Blockchain’s Crypto Mining Revenue Is Almost $68m
Today, a blockchain firm, Hive technology, released its earnings report for q1 2021. Remarkably, the company’s earnings from digital assets mining were almost $68m for that period under review, an increase of nearly 175% compared to 2020. Hive’s net income and gross mining margin (GMM) for that period were also far higher than last year.
Its net income was $42.6m for Q1 2021 but $1.8m for last year, while its GMM was $50.2m this year compared to $8.5m in 2020. As of the period under review, Hive had mined almost 96,500 ETH and about 600 BTC.
In his reaction to the earnings report, the company’s interim chairman, Frank Holmes, said that Hive accomplished incredible results in the year under review despite the rampaging covid-19 pandemic. Hence, it will not relent in its mining efforts, especially for the top two digital assets. Holmes further said, “after greatly increasing our BTC cloud and Ethereum mining operations last year, we are now fully in charge of our mining operations. Thus, our overhead costs have reduced significantly.”
Hive’s crypto mining capabilities have increased dramatically since the beginning of this year. Last month, the company reached its target of 1 Exahash in BTC mining. Consequently, it bought 1,900 mining rigs to expand its mining capacity. Now, the firm plans to optimize its mining operations to enhance efficiency and profits without added costs or risks.
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