Canaan Inc., a computer hardware manufacturing company based in China, has established its bitcoin mining in Kazakhstan. A company spokesman indicated that their AvalonMiner had already been set up in the country and was up and running. While there’s only a small batch of mining machines installed and running currently, the company is looking to operate there fully with time.
The company’s chairman and CEO, Nangeng Zhang, said that the company’s self-operated mining business would help improve its financial performance and expand its scope of business as well as customer base. The bitcoin mining initiative was one of Canaan’s strategic plans.
This move comes shortly after the company set up its first after sales service center in the country earlier this month. The center aims to provide the company’s customers with services such as warranty, machine testing, and maintenance, maintenance support, and training.
The company, which was established in 2013, made a name for itself with its ASIC-powered bitcoin mining machine. In the first quarter of 2021, it declared revenue of $61 million. Its move toward bitcoin mining is anticipated to see it grow significantly. Recently, Canaan partnered with crypto giant Genesis Digital Assets which placed an order of 10,000 mining machines from them, valued at approximately US $93.63 million.
Canaan’s decision to mine BTC in Kazakhstan might have been precipitated by China’s stern position regarding cryptocurrencies.
China’s crackdown on crypto came about as the central bank found them to be disruptive to the normal order of the economy and had higher risks of facilitating illegal cross-border transfers of assets and illegal activities such as money laundering.
The country initially hosted about 75% of the worlds’ crypto mining thanks to the availability of cheap electricity and technological equipment.
BIT Mining, another Chinese mining company, also established mining firms and started operations in Kazakhstan following the crackdown. Genesis Mining and Bitfury-a Chinese company also has mining firms in the country.
Kazakhstan is favored by miners because the regulations support mining, electricity costs are low and its location is great with a cool climate and close proximity to China.