Hardware manufacturer Canaan is expanding its crypto mining business in Kazakhstan. The company is currently working with a number of local mining companies, and despite the country’s power supply challenges, more than 10,000 pieces of hardware have been deployed. Rising energy prices have also triggered protests that may affect the industry.
Canaan and Kazakhstan company sign mining agreement
Canaan, a manufacturer of coin minting equipment based in China, announced that it has reached a cooperation agreement with a number of crypto mining companies in Kazakhstan. As the People’s Republic of China continues to crack down on the crypto mining industry, this Central Asian country has attracted miners with its low electricity bills and a generally friendly attitude.
In a press release issued on Tuesday, the company revealed that it has successfully installed the last batch of mining machines for the first phase of its deployment in Kazakhstan. Noting that it continues to deploy additional computing power in accordance with its mining business expansion plan, Canaan elaborated:
As of December 31, 2021, the company has 10,300 AvalonMiner units in its mining operations in the country.
“The deployment of more than 10,000 mining machines not only deepens our cooperation with leading local mines, but also marks our significant progress in the cultivation of Bitcoin mining business,” commented Zhang Nan, CEO of Canaan. “Working hand in hand with mining companies, we are very happy to be able to use our respective strengths and resources to maximize profits and capitalize on the growth of the digital asset industry,” the executive added.
After the Chinese government launched a nationwide program, many mining companies tried to transfer their equipment to more favorable jurisdictions, and Canaan was one of them. attack The impact on the mining industry in May last year. The list includes names like Bitfufu, a mining entity backed by Bitmain, another major manufacturer of application-specific integrated circuit (ASIC) rigs.
Some crypto miners leave Kazakhstan due to protests caused by rising energy prices
Kazakhstan maintains its electricity price ceiling and has taken measures adjust The department initially welcomed miners and became the obvious choice for many of them.However, last year’s Influx Of mining companies have cause The electricity deficit in the first three quarters of 2021 will continue to grow, exceeding 7%.
A recent report shows that some mining companies have move out The country seeks destinations with more stable power supply, such as the United States. At the same time, the Kazakhstan government has been exploring ways to solve power shortages, including restarting a ten-year-old nuclear power plant construction project.
The country usually has abundant energy resources, but as the price of natural gas rose, anti-government protests broke out in the first few days of the new year.The riots may affect the energy-intensive mining industry, and members of the international cryptocurrency community have warn Miners must pay attention to safety.
In order to control the situation, President Kassim-Jomart Tokayev issued an order to restrict the prices of natural gas, fuel and food, and blamed the protest on the government. The cabinet has resigned. November, Tokayev Require “Emergency” supervision of the country’s expanding crypto mining industry emphasizes the need to ensure uninterrupted power supply for businesses and households.
Do you think more companies will follow Canaan, or will we see an outflow of crypto miners from Kazakhstan? Tell us in the comments section below.
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