Hardware manufacturer Canaan is expanding its crypto mining activities in Kazakhstan. The company is now cooperating with several mining companies there and has already deployed over 10,000 pieces of hardware despite the challenges of the country’s power supply. Increased energy prices have also provoked protests that could potentially affect the industry.
Canaan secures mining agreements with companies in Kazakhstan
Minting machine manufacturer Canaan, with roots in China, has announced that it has entered into cooperation agreements with several crypto mining companies in Kazakhstan. Amid an ongoing crackdown on the People’s Republic of crypto mining industry, the Central Asian country has become a magnet for miners with its low electricity prices and generally friendly attitude.
In a press release released on Tuesday, the company announced that it had successfully installed the final batch of mining equipment for the first phase of its deployment in Kazakhstan. Noting that it is continuing to provide additional computing power in line with its mining business expansion plan, Canaan stated:
As of December 31, 2021, the company had a total of 10,300 AvalonMiner units in mining operations across the country.
“The use of over 10,000 mining machines not only deepens our cooperation with leading local mining farms, but also marks our great successes in our cultivation of the Bitcoin mining business,” commented Canaan CEO Nangeng Zhang. “In working with mining companies, we are excited to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital asset industry,” added the executive.
Canaan is among numerous mining companies trying 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 company backed by another major manufacturer of application specific integrated circuit (ASIC) rigs, Bitmain.
Some crypto miners are leaving Kazakhstan as rising energy prices sparked protests
Kazakhstan, sticking to limited electricity tariffs and taking steps to regulate the sector, initially welcomed miners and has become an obvious choice for many of them. However, the influx of mining companies over the past year has resulted in a growing power deficit that exceeded 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 a more stable power supply, such as the US decade-old project to build a nuclear power plant.
In the normally energy-rich country, protests against the government broke out in the first few days of the new year after gas prices rose. The riots could potentially impact the energy-intensive mining industry, and members of the international crypto community are already warning miners to be careful about their safety.
In an attempt to bring the situation under control, President Kassym-Jomart Tokayev issued an order limiting gasoline, fuel and food prices, blaming the government for 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 uninterrupted power supplies for both businesses and households.
Tags in this story
ASIC, ASICs, Canaan, Crypto, Crypto Miner, Crypto Mining, Cryptocurrencies, Cryptocurrency, Deficit, Electricity, Energy, Equipment, Exodus, Hardware, Inflow, Kazakhstan, Miners, Mining, Mining Devices, Mining Equipment, Mining Hardware, Mining Machines, Power, bottlenecks
Do you think more companies will follow Canaan’s example or will we see an exodus of crypto miners from Kazakhstan? Let us know in the comments section below.
Lubomir Tassev is a tech-savvy journalist from Eastern Europe who likes Hitchens’ quote: “Being a writer is what I am and not what I do.” In addition to crypto, blockchain and fintech, international politics and economics are two more Sources of inspiration.
Photo credit: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.