Canaan, a hardware manufacturer is growing its crypto mining operation in Kazakhstan. The company is now cooperating with a number of mining firms there and has already deployed over 10,000 pieces of hardware despite the country’s challenges with electricity supply. The industry could be affected by protests triggered by rising energy costs.
Canaan Secures Mining Agreements in Kazakhstan
Canaan, a China-rooted manufacturer of coin minting machinery, announced today that it has signed collaboration agreements in Kazakhstan with multiple cryptocurrency mining companies. Amid an ongoing crackdown on the crypto mining industry in the People’s Republic, the Central Asian country has become a magnet for miners with its low electricity rates and generally friendly attitude.
The company published a press release on Tuesday revealing that it has successfully installed its first stage of Kazakhstani mining equipment. Canaan noted that the company continues to use additional computing power as part of its expansion plans for mining.
On December 31, 2021 the Company had a total of 10,300 AvalonMiner unit in its country-wide mining operations.
“The deployment of over 10,000 mining machines not only deepens our collaboration with leading local mining farms, but also marks our great strikes in our cultivation of the Bitcoin mining business,” Canaan CEO Nangeng Zhang commented. “Joining hands with mining firms, we are excited to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital assets industry,” the executive added.
Canaan is one of the many mining companies who sought to relocate equipment to favorable locations following a Chinese offensive on the sector. This list also includes Bitfufu (a mining company that is supported by Bitmain, another large manufacturer of ASIC rigs).
As rising energy prices spark protests, some crypto miners leave Kazakhstan
Kazakhstan has taken measures to regulate this sector and maintains electricity tariffs that are capped. It was initially openly welcoming of miners, and it became a popular choice for many. However, last year’s influx of mining companies has caused a growing power deficit that exceeded 7% in the first three quarters of 2021.
According to a recent report, some miners are moving from Kazakhstan to seek out countries that have a stable electricity supply like the U.S. In the meantime, Kazakhstan’s government is exploring options to combat electricity shortages. This includes reviving an enviable decade-old nuclear power plant project.
This country is usually rich in energy resources and saw anti-government protests rise during the first few days of the New Year, after an increase in prices for natural gas. Members of the international cryptocommunity are aware that the unrest may have an impact on the mining sector, which is energy-intensive. warningSafety is a top priority for miners
To bring things under control, President Kassym Jomart Tokayev made an order restricting fuel and gas prices. The government was blamed for the protests. The resignations have been made by the cabinet of ministers. In November, Tokayev called for “urgent” regulation of the country’s expanding crypto mining sector, emphasizing the need to ensure an uninterrupted electricity supply for both businesses and households.
Do you think more companies will follow Canaan’s example or will we see an exodus of crypto miners from Kazakhstan? Leave your comments below.
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