Hardware maker Canaan is expanding crypto mining operations into Kazakhstan. The company is now cooperating with a number of mining companies there and has already deployed more than 10,000 pieces of equipment despite the country’s challenges in supplying electricity. Rising energy prices have also sparked protests that could potentially affect the industry.
Canaan secures mining deals with companies in Kazakhstan
Chinese coin minting equipment producer Canaan has announced that it has entered into collaboration agreements with several crypto mining companies in Kazakhstan. Amid an ongoing crackdown on the crypto mining industry in the People’s Republic, the Central Asian country has emerged as a magnet for miners with its low electricity tariffs and generally friendly demeanor.
In a press release on Tuesday, the company revealed that it has successfully installed the latest batch of mining machines for the first phase of its deployment in Kazakhstan. Noting that it continues to deploy additional computing power in line with its plan to expand mining, Canaan detailed:
As of December 31, 2021, the Company had a total of 10,300 AvalonMiner units in mining operation in the country.
“The deployment of over 10,000 mining machines not only deepens our collaboration with major local mining farms, but also marks our big strikes in our development of Bitcoin mining business,” commented Canaan CEO Nangeng Zhang. “By partnering with mining companies, we are delighted to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital asset industry,” added the leader.
Canaan is among many mining companies that have sought to move their equipment to more favorable jurisdictions after the Chinese government launched a nationwide offensive against the mining sector in May last year. The list includes names like Bitfufu, a mining entity backed by another major application-specific integrated circuit (ASIC) platform maker, Bitmain.
Some crypto miners leave Kazakhstan as rising energy prices spark protests
Kazakhstan, which maintains capped electricity tariffs and has taken steps to regulate the sector, initially welcomed miners and has become an obvious choice for many. However, the influx of mining companies last year caused a growing energy deficit to exceed 7% in the first three quarters of 2021.
A recent report found that some mining companies are already leaving the country in search of destinations with more stable power supplies like the United States. ten year old project to build a nuclear power plant.
The country, normally rich in energy resources, saw anti-government protests erupt in the first days of the new year, following a rise in natural gas prices. The unrest could potentially affect the energy-intensive mining industry and members of the international crypto community are already Warning minors to ensure their safety.
In an attempt to bring the situation under control, President Kassym-Jomart Tokayev issued an order to limit the prices of gasoline, fuel and foodstuffs, accusing the government of being behind the protests. The cabinet of ministers has resigned. In November, Tokayev called for “urgent” regulation of the country’s expanding crypto mining sector, stressing the need to ensure an uninterrupted supply of electricity for businesses and households.
Do you think more companies will follow Canaan’s lead or will we see an exodus of crypto miners from Kazakhstan? Tell us in the comments section below.
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