Concerns over power supply and cost uncertainties have prompted Singapore-based Bitcoin miner SAI.TECH (SAI) to terminate the remainder of its expansion plans in Kazakhstan, the Nasdaq-listed company said in a statement.
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Fast facts
- SAI has terminated the second phase of 90MW power supply cooperation, part of a 2021 agreement with Better Tech Limited.
- The decision stems from SAI.TECH receiving concerns from its power partners and hosting customers about its operation stability and costs, the statement said.
- Operations had already been delayed due to national riots in Kazakhstan that commenced in January this year, the company said.
- SAI will, however, continue to execute its first phase of cryptocurrency mining operation, which started in August last year and has 15MW of capacity.
- Kazakhstan became the world’s second-largest Bitcoin producer last year after miners moved there following China’s mining crackdowns.
- However, in an attempt to regulate the sector and curb illegal mining, Kazakhstan’s energy authority identified and disconnected 13 unauthorized crypto mining farms in the country earlier this year.
- The Central Asian nation also ordered cryptocurrency miners to file regular status reports.
See related article: Beijing banned crypto mining, so China miners went underground