Pakistan Taps Surplus Energy for Bitcoin Mining Amid Crypto-Friendly Shift

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10.04.2025 152 times read 6 Comments

Pakistan Utilizes Surplus Energy for Bitcoin Mining

Pakistan has announced plans to use its surplus energy for Bitcoin mining, marking a significant shift in its stance on cryptocurrencies. Previously, such activities were banned, but the new government aims to attract international investments and utilize unused resources effectively. According to Bilal bin Saqib, chairman of the Crypto Council in Pakistan, discussions with Bitcoin mining companies are already underway.

The country currently generates approximately 10 gigawatts of surplus energy, a significant portion of which comes from renewable sources like wind, water, and solar energy. By channeling this energy into Bitcoin mining, Pakistan hopes to reduce state costs and accumulate Bitcoin as a long-term asset. This initiative is part of a broader strategy to create a crypto-friendly environment and integrate blockchain technology into the nation's financial infrastructure.

“Pakistan is positioning itself as a key player in the global crypto market,” said Bilal bin Saqib, emphasizing the country's commitment to technological advancement.

Key Takeaways:

  • Pakistan plans to use 10 gigawatts of surplus energy for Bitcoin mining.
  • Nearly 40% of this energy comes from renewable sources.
  • The government is working on legalizing cryptocurrency trading to attract foreign investments.

US Tariffs Threaten Bitcoin Mining Industry

The recent imposition of US tariffs has caused significant disruptions in the Bitcoin mining industry. Starting April 5, all imports to the US are subject to a minimum tariff of 10%, with additional penalties for countries with high trade deficits. This has led to a scramble among Asian miners to ship their equipment to the US before the tariffs take effect.

US-listed Bitcoin mining companies, such as CleanSpark and MARA Holdings, have already experienced a decline in stock prices due to these tariffs. The cost of acquiring mining equipment has risen by over 20%, significantly impacting the return on investment for miners. Bitmain Technologies, which holds 90% of the market for specialized Bitcoin mining PCs, has faced delays in equipment shipments due to increased customs inspections.

Despite these challenges, the US remains a leading hub for Bitcoin mining, especially after China's 2021 ban on cryptocurrency mining. However, the conflicting goals of promoting domestic mining while imposing tariffs on essential equipment create a complex scenario for the industry.

Key Takeaways:

  • US tariffs have increased the cost of mining equipment by over 20%.
  • Bitmain Technologies faces delays in shipping due to customs inspections.
  • US-listed miners like CleanSpark are experiencing stock price declines.

Bitcoin Mining Companies Generate $800 Million in Q1 2025

Leading Bitcoin mining companies produced Bitcoin worth nearly $800 million in the first quarter of 2025. This achievement highlights the sector's continued growth, with Bitcoin prices remaining close to record highs. Publicly available data shows that over 9,700 Bitcoin were mined during this period, with a market value of approximately $81,600 per Bitcoin.

Marathon Digital led the production with 2,285 Bitcoin, valued at $186 million. CleanSpark followed with 1,950 Bitcoin, worth $160 million, while Iren produced 1,513 Bitcoin, valued at $124 million. Riot Blockchain and Hut 8 Mining also reported significant outputs, with Hut 8 showing the highest growth rate of 91% compared to the previous month.

Hut 8 recently partnered with Donald Trump Jr. and Eric Trump to launch a new mining project, "American Bitcoin," aiming to become the world's largest and most efficient Bitcoin miner. This collaboration underscores the growing interest in expanding Bitcoin mining operations in the US.

Key Takeaways:

  • Bitcoin mining companies produced over 9,700 BTC in Q1 2025, valued at $800 million.
  • Marathon Digital led production with 2,285 BTC, followed by CleanSpark and Iren.
  • Hut 8 Mining reported a 91% growth rate and launched a new project with the Trump family.

Sources:

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This is such an interesting development from Pakistan! Honestly, I didn’t expect a country that was so skeptical about cryptocurrencies just a few years ago to make such a bold move towards Bitcoin mining and creating a crypto-friendly ecosystem. It’s clear that they’re trying to ride the global wave and position themselves as a key player in the crypto space. The fact that they’re utilizing surplus energy, especially renewable sources like solar and wind, makes the whole plan feel more sustainable compared to the way mining is often criticized for its heavy energy consumption.

What really caught my attention is that they have 10 gigawatts of surplus energy—that’s huge! I wonder, though, what kind of infrastructure they currently have in place for this mining push? Do they already have partnerships locked down with major mining firms, or are they counting on foreign investors to set that up? It feels like even with all that energy available, having the right tech and regulatory framework in place is going to be a big challenge for them to really scale outputs effectively.

Another thing I keep coming back to while reading this article is the comparison with the US situation. On one hand, you’ve got countries like Pakistan trying to attract investors by creating a more welcoming crypto framework, and then on the other hand, the US imposing tariffs that seem to discourage mining efforts. I get that the US is prioritizing other economic factors, but the harsh tariffs combined with rising equipment costs could really push more miners out of the country, especially smaller or independent operations. It’s kind of ironic considering the US was thriving as a mining hub post-China’s mining ban in 2021. The contrast between these two approaches says a lot about how differently governments are viewing crypto right now.

Back to Pakistan, though—if this works, it could be a game changer for their economy. Mining Bitcoin as a form of state investment is a pretty innovative idea, especially in a developing nation where traditional investments like gold reserves are usually preferred. But I do wonder if the volatility of Bitcoin could end up backfiring on them. What happens if the market crashes again? Their plans for using it as a ‘long-term asset’ sound good in theory, but crypto has such a history of unpredictability that it feels like a risky gamble. I’m also curious if they’re considering social and environmental trade-offs—while renewable energy sounds great, will local communities benefit from this surplus energy too, or is it purely skewed towards mining initiatives? It’d be unfortunate if the energy is dedicated to mining while local needs are still unmet.

The global crypto space is definitely getting more complex and competitive. It’ll be fascinating to see whether Pakistan’s bet actually pays off, and whether other countries dealing with surplus energy (India, maybe?) try to adopt similar strategies. Anyway, good to see them thinking ahead, but there are definitely some hurdles they’ll need to tackle along the way.
Wow I didnt no they had alredy started chatting with mining companeys. Does this mean they might bypass making local farmer or smal bizness use that extra energy?? Seems unfair if its just for Bitcoin cause ppl need power too! Not sure how they balance that...
Do they really have talks going with big mining firms alrdy or is that just something they are saying to hype up the plan??
idk i dont understand how this cn all work rlly lke they saying they got 10 gigawyatts of energie just laying roud but struggles with electricity r still there in lotta areas in pakistan, sooo where exactly is al that leftover power comming frm? do they just like turn off the other lights 4 ppl or??? seems kinda off to me tbh. also how secure is this bitcoin mining stuff like couldnt the whole thing mai b get hacked or somethng??

And while theyre talking to "companies alreddy" like wat companies?? no names?? feels shady sometimes wen ppl dont say explicit names... like hello transparency??

Also i wud think thers no way this is better than gold as the "long-term asset" they trying to say bitcoin will b useful for. cuz bitcoin be jumping up and down all teh time, u wake up rich n next day poor. dindt pakistans goverment just hav a currency issue or somthing recently,? so what they gna do if bitcoin tanks next month lol oops.

oh also, if they send all that extra energy to crypto mining does that mean it cant b used 4 other cool stuff?? like making new factories or schools or idk farms powered by solar!?? i feel like we totally missing those ???s

anyway sry if this all over the place just kinda wana hear wht others think
I'm curious if Pakistan's effort to legalize crypto trading will face significant pushback from traditional financial sectors within the country, given the historical skepticism towards cryptocurrencies.
Do they even have the Blockchain know how to pull this off, or is it all just talk till now?
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