Bitcoin (BTC) mining hardware manufacturer Canaan Inc is now expanding its services in Kazakhstan. This expansion into the new market comes after the company signed new strategic partnerships with many crypto mining companies in the nation.
China’s crackdown on cryptocurrency mining has enabled Kazakhstan to rapidly fill the gap by providing cheap fuel and a welcoming business environment.
Canaan, a Nasdaq-listed company, announced on January 4, 2022, that it had deployed up to 10,300 AvalonMiner units in Kazakhstan as of Dec. 31, 2021, completing phase one of its deployment in the central Asian nation. The company is partnering with local companies as a part of its business growth plans outside China. But, the firm declined to list any of its local business partners.
Canaan is based in Hangzhou, China. But, the firm is now eyeing expansion away from its home country after Beijing’s blanket ban and a crackdown on crypto mining last year. Canaan’s CEO, Zhang Nangeng, spoke out against the cryptocurrency mining ban during an earnings call in July 2021.
He told investors that the crypto miners make better use of the available excess electricity, and they also contribute positively to employment and the general local economy. With China banning and suffocating the crypto mining sector, neighboring Kazakhstan has moved quickly to fill the gap that came up. It offered the displaced miners a lot of cheap coal to conduct their mining activities.Buy Bitcoin Now
Miners Head To Kazakhstan
By June 2021, the world’s fifth-biggest mining pool had set up shop in Kazakhstan. In July, Kazakhstan accounted for almost 20% of the global Bitcoin mining output. China’s ban on BTC mining caused a steep drop in network hash rate. However, all that has quickly reversed after the displaced miners set up new centers of operation in Kazakhstan.
— Bitcoin Archive 🗄🚀🌔 (@BTC_Archive) January 3, 2022
After a 6-month recovery, the Bitcoin network’s hash rate surged to a new all-time high on January 2, 2022. In the case of Canaan, the firm recorded significant growth in 2021, with the net revenues reaching post-IPO highs. The firm’s net revenues reached $204.5 million in Q3 2021, up around 708.2% over the same period a year before, based on unaudited financial data posted in November.