Canaan, a major ASIC miner manufacturer, and BTC.com, the fifth-largest Bitcoin miner group, are moving into China’s backyard, with particular focus on the Central Asian country of Kazakhstan.
As the crackdown on cryptocurrencies in China continues, so does the migration of miners looking to other parts of the world where they can set up shop. Today, political stability, regulatory clarity and respect for private property rights are the most important criteria for miners.
Miners Look to New Options
With confirmed bans in multiple regions including Xinjiang, Inner Mongolia, Sichuan and Yunnan, miners are looking for new options. One of BIT Mining’s data centres (part of the BTC.com mining pool) received a notice from the Sichuan State Grid informing it that the grid would cut its power supply by June 19. In response, the company expects to have 2600 Bitcoin miners shipped to Kazakhstan by the start of July.
Over the coming quarters, it plans to ship its remaining mining machines to other data centres outside of China. BIT Mining has also invested US$25 million in a new mining centre in Texas.
Following our investments in cryptocurrency mining data centres in Texas and Kazakhstan, we are accelerating our overseas development for alternative high-quality mining resources.
Xianfeng Yang, CEO of BIT Mining
Canaan the Latest Mover
Chinese ASIC manufacturer Canaan has also decided to set up a base in Kazakhstan, where it plans to diversify its mining operations.
One of the main considerations for these businesses moving from China is the high cost of transporting equipment halfway across the world. Miners need a place with existing infrastructure capable of supporting the needs of these types of businesses.
Some Operators Are More Cautious
Besides the country’s relative proximity, this is a contributing factor in moving to Kazakhstan as it is expected to host several other crypto mining firms in the future. Some operators, however, are more cautious.
I think Kazakhstan has already hit a sort of ceiling as to how many miners can move into the country.
Alejandro De La Torre, Poolin vice-president
The US is a second option for miners who can afford it. States such as Texas, Mississippi, Tennessee and Florida have already indicated their openness to migratory miners.
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