Canaan partnering with local Bitcoin mining firms in Kazakhstan
A Bitcoin mining hardware manufacturer, Canaan Inc, has announced its expansion into Kazakhstan. The firm has announced it has already signed several partnership deals with mining firms in Kazakhstan.
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Kazakhstan currently ranks as the second-largest mining hub regarding the mining hash rate. Since China announced a ban on Bitcoin mining activities, miners shifted towards Kazakhstan and other overseas locations with friendlier laws.
Canaan expanding into Kazakhstan
On Tuesday, Canaan announced that by December 31, 2021, it had released 10,300 AvalonMiner units in Kazakhstan. The Nasdaq-listed firm noted that this deployment marked the first phase of moving into Kazakhstan.
As mentioned earlier, the company is pursuing its expansion into Kazakhstan by partnering with local firms. However, it has not given the names of its local partners.
Canaan is a company based in Hangzhou, China. However, the firm is now branching out of its home country because of the increased regulatory risk in China. Last year, China imposed a blanket ban on crypto mining, forcing many mining firms out of the country.
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In July, Zhang Nangeng, the CEO of Canaan, bashed the mining ban in China. In his speech during an earnings call at the time, the executive noted that crypto miners used stranded electricity in their activities. He also noted that miners aided the local economy by creating employment.
Mining firms have recovered after China ban
Kazakhstan became a preferable mining hub after China left the crypto mining sector. The country offers access to cheap energy. Some of the largest Bitcoin mining firms and pools have moved into Kazakhstan, which has resulted in the country taking the second-largest share in the entire Bitcoin mining hash rate.
After China banned crypto mining, the Bitcoin mining hash rate was deeply affected because most miners went offline. Before the ban, China was the largest Bitcoin mining hub. On January 2 2021, the Bitcoin mining hash rate reached an all-time high, showing that mining activities have fully recovered.
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As one of the leading mining hardware manufacturers, Canaan has recorded incredible growth over the past year. In 2021, the company’s net revenues reached post-IPO highs. During the third quarter of 2021, the net revenues reached $204.5 million, representing a 708.2% growth over the same period in the previous year.
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