The crackdown on cryptocurrency mining activities in China is pushing crypto mining farms to reconsider their options and move to other countries.
Publicly-listed BIT Mining delivers mining hardware to Kazakhstan
BIT Mining, one of the leading cryptocurrency mining firms in China, has successfully delivered mining machines to Kazakhstan. The mining firm was affected by the latest crackdown on crypto mining activities in China and is already seeking to move its operations abroad.
In a press release, the firm said, “This first batch consisting of 320 mining machines with a theoretical maximum total hash rate capacity of 18.2 PH/s is expected to be deployed and in operation by June 27, 2021.”
BIT is expecting to move 2,600 mining machines to Kazakhstan by July 1. The machines will have a theoretical maximum total hash rate capacity of 102.3 PH/s. “In execution of its overseas deployment strategy, the Company expects to ship its remaining mining machines to overseas data centers over the coming quarters,” the post added.
This latest development comes a month after Cryptonary reported that BIT Mining had committed $9.33 million to build and operate the Kazakhstan Mining Data Center. BIT Mining partnered with a local firm on this operation, with BIT controlling 80% of the stake.
China’s latest crackdown could lead to the decentralization of the mining sector
Various provinces in China, most recently, Sichuan, have banned cryptocurrency mining activities. Chinese authorities have cut off the power supply to mining farms and other smaller cryptocurrency miners.
The ban could lead some of the mining farms to move their operations to other countries. BIT is expanding its operations outside China, and the Mayor of Miami has told Chinese miners that the door is open for them to move their operations to the United States.
China currently controls roughly 65% of the Bitcoin network hashrate. With the ban on crypto mining activities, Bitcoin mining could finally achieve true decentralization as the operations are moved from China to other countries.