Chinese miners are looking for alternatives, and Kazakhstan has become a favorable country for some of them.
Canaan to expand into Bitcoin mining in Kazakhstan
Canaan, one of the leading manufacturers of bitcoin mining machines, is diversifying its business to include cryptocurrency mining. The company is majorly known for manufacturing ASIC mining rigs but has now decided to enter the cryptocurrency mining business.
In a press release earlier today, Canaan said it would set up a base of operations in Kazakhstan. Canaan said the move is necessary to expand its business scope and help lift its financial performance.
CEO Nangeng Zhang said, “As we integrate more industry resources into our operations, we believe this business segment will enable us to revitalize our mining machine inventory, shield us from bitcoin volatility, and ensure our inventory sufficiency during market upturns.” The company intends to take advantage of the manufacturing and mining businesses to expand its financial performance in the coming months and years.
Kazakhstan becomes a good destination for Chinese miners
The NASDAQ-listed ASIC manufacturer is the second Chinese company in two days to announce expansion into Kazakhstan. BIT Mining has already begun expanding operations into Kazakhstan after moving 320 mining machines to its base of operation in the country. It intends to deliver an additional 2,600 machines by July 1.
Chinese mining companies are considering Kazakhstan due to the latest crackdown on crypto mining activities in China. Several Chinese provinces have now cut off miners from their power supply. China currently controls roughly 65% of the Bitcoin network hashrate. However, this number is expected to drop as more miners find their way to more crypto-friendly countries.