Cryptocurrency mining firms in China are slowly moving their operations to other countries as the crackdown on crypto mining activities intensifies. Kazakhstan has become a favorable destination, and two crypto mining firms are already setting up operations there.
Kazakhstan becomes a favorable destination for miners
Two Chinese cryptocurrency mining companies have begun expanding their operations abroad due to the recent crackdown on mining activities. Kazakhstan has become a favorable destination for them, with the country expected to host several other crypto mining firms in the future.
In a press release yesterday, publicly-listed BIT Mining announced that it had successfully delivered 320 mining machines with a theoretical maximum total hash rate capacity of 18.2 PH/s. The machines would be fully operational in a few days.
BIT further added that it intends to ship another 2,600 mining machines to Kazakhstan by next week. The mining hardware will have a theoretical maximum total hash rate capacity of 102.3 PH/s. The company had begun investing in Kazakhstan before the ban on cryptocurrency mining activities in China.
Canaan, one of the leading Bitcoin mining hardware manufacturers, announced in a press release earlier today that it has set up a base of operations in Kazakhstan. The company is making an effort to diversify into Bitcoin mining operations while also selling the mining rigs. Canaan is expecting to expand its operations in Kazakhstan over time, thanks to the crypto-friendly nature of the country.
China’s latest crackdown affects crypto miners
Several provinces in China have banned cryptocurrency mining activities. Sichuan province announced its measure last week, with 26 Bitcoin mining farms no longer enjoying power supply from the region.
The measures taken by the People’s Bank of China directing banks and financial institutions to cut off payment channels further made it hard for crypto traders. As a result, Bitcoin’s price slipped below the $30k region for the first time since the start of the year.
However, the leading cryptocurrency’s price is slowly recovering, and it is currently trading close to $34k per coin.