BitFuFu suffered losses due to equipment downtime as a result of power supply restrictions to miners in Kazakhstan. Therefore, the company decided to gradually relocate to the United States.
BitFuFu, a company offering services for the rental of mining equipment, in November
disconnected part of their ASIC miners due to lack of electricity. The company suffered significant losses as a result of equipment downtime. The reason for the power outages was the introduction by the authorities of Kazakhstan of rationing the supply of electricity for miners. The country’s government was forced to limit the supply of data centers due to the energy crisis.
The company has decided to relocate its facilities to the United States. Therefore, I ordered the delivery of new equipment from the manufacturer of miners Bitmain to one of the North American states. The equipment was cleared at customs and delivered to the datacenter late due to Thanksgiving.
Some investors express dissatisfaction and ask for compensation for losses, threatening to go to competitors. But most understand the situation and do not blame the company. BitFuFu acknowledged the problem and announced on October 14 that it would extend users’ contracts as compensation while their leased capacity was not being used. The company is considering the possibility of selling equipment in Kazakhstan and moving to the United States.
Last month, the founder of mining company Xive announced that cryptocurrency miners in South Kazakhstan are moving capacity to Russia and the United States due to power shortages. All this happens after the statement of the Ministry of Energy of Kazakhstan that the authorities will not restrict the activities of “white” mining farms, but will take measures against miners working in the country illegally. Recently, a deputy of the lower house of the Kazakh parliament said that the solution to the energy crisis and the regulation of mining are possible only with the coordination of the actions of all state bodies. In his opinion, the accusation of miners will not help to overcome the energy crisis, a new law is needed.