Government of Kyrgyzstan to leverage Bitcoin mining to avoid $37 million a year in energy losses
The Kyrgyz Republic is looking to harness its excess hydropower to mine Bitcoin.
Kyrgyzstan is a small country with a population of around 6.7 million and a GDP of around $8 billion.
President Sadyr Japarov of the Kyrgyz Republic has greenlit the development of a Bitcoin mining hub, right next to the Naryn river, the country's mightiest river.
With the hydroelectric station unable to sell its overabundance of energy, bitcoin mining was a natural fit for this.
“Running a Bitcoin mining farm will allow the government to avoid energy losses associated with non-used power from the power plant” — Kyrgyzstan president
Project Details
The Kambar-Ata-2 Hydro Power Plant will be home to this spanking new Bitcoin mine, with an investment bucket of around $20 million.
But why there?
The power plant has been losing money by having 30 MW of its 120 MW annual capacity just… disappear into thin air. Roughly $37 million dollars of unused energy.
They have the power to spare in the summer, and it's just sitting there... Why not channel that into mining bitcoin?
That’s the plan.
In the winter months they will likely turn miners off as demand increases and that is the beauty of Bitcoin mining. With the money they earn from mining, they can reinvest in their grid and keep the power plan running at optimal efficiency.
Kyrgyzstan is in it for the long game. The blueprint suggests this mine will be up and hashing in under a year!
Japarov’s future plans?
More hydroelectric projects and turning Kyrgyzstan into the energy mogul of the region, exporting power straight to Pakistan and Afghanistan.
All Eyes on the Operation
For those curious about regulation – the government won't be lax. Japarov emphasizes meticulous oversight, assuring that if there's even a hint of harm to the state, corrective measures are on the way.
As he rightly puts it,
"In today's political landscape, we're always watching, always calculating."
In-House Bitcoin Advocates
Parliament Deputy Karim Xanzheza is the man in the inside!
Last year, he showed off his pro-crypto colors, saying, “Cryptos are skyrocketing, and Kyrgyzstan shouldn’t be left behind!”
He's rallying for not just a welcoming framework for the crypto industry, but even pitching the idea of a national cryptocurrency. Let’s hope he gets fully orange pilled in the process of bringing this mine online and drops the CBDC ideas.
Will be keeping an eye on these developments and see where they are in a year.
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