Kyrgyzstan has enacted a temporary shutdown of its crypto mining farms in response to significant energy shortages. This decision arises from low water levels affecting the country”s hydroelectric dams, which are critical for power generation. The Energy Minister announced that all crypto mining operations would be disconnected from the electrical grid.
The shutdown aims to prioritize energy availability for the general population, especially as electricity demand surges during the winter months. President Sadyr Zhaparov emphasized that projects that do not significantly benefit the state are subject to careful evaluations, potentially leading to their suspension. He reassured the public that mining activities will recommence once energy conditions improve, expected by the spring of 2026.
The energy crisis is not unique to Kyrgyzstan. Other regions, including parts of Russia, have also implemented seasonal bans on crypto mining to prevent grid overloads during harsh winter conditions. In contrast, while some countries curtail mining activities, companies like CleanSpark have successfully raised substantial funds to expand their operations.
Kyrgyzstan houses two main mining facilities. The first is located in Kemin, which relies entirely on electricity imported from Russia through Kazakhstan. Despite contributing to the state budget, this facility was also disconnected to conserve energy. The second mining farm is situated at the Kambar-Ata 2 hydroelectric power station and previously utilized surplus electricity from the adjacent plant. However, only a portion of its nominal capacity is operational due to outdated infrastructure.
While both farms are expected to resume their mining operations in late March 2026, the government is simultaneously exploring ways to enhance energy production. President Zhaparov reaffirmed plans to attract additional miners once new power generation projects are completed. Upcoming initiatives include the Kambar-Ata 1 hydroelectric power plant and a solar facility with a capacity of 120 MW, both slated to be operational by the year”s end.
The recent regulatory framework governing virtual assets aims to provide a structured legal environment for bitcoin mining and other crypto activities, including those conducted by state-owned enterprises. This legislative effort is part of Kyrgyzstan”s broader strategy to launch a digital currency, potentially bolstering its economic landscape.
