Bitcoin (BTC): BIT Mining subsidiary seeks refuge in Kazakhstan
Following the Chinese authorities’ crusade against cryptocurrencies, BIT Mining, a company specializing in Bitcoin (BTC) mining, decided to move part of its facilities to neighboring Kazakhstan.
320 machines sent to Kazakhstan
A mining company listed on the New York Stock Exchange, BIT Mining, announced on Monday that it has transferred its first mining machines to Kazakhstan. A total of 320 mining machines have already arrived on in the country. These machines boast 18.2 petahashes of mining power. They are expected to be operational by 27th June.
The Chinese company does not intend to stop in such a good way since it has planned to ship two more batches of machine for a total of 2,600 mining machines. These new arrivals are expected by 1st July.
A response to the Chinese crackdown
The choice to relocate its mining machines to Kazakhstan was not done on a whim; it comes in reaction to the Chinese authorities’ desire to push back against cryptocurrencies.
The BIT Mining subsidiary is one of the 26 mining facilities that have been ordered to close by the Sichuan hydroelectric power plant. On Saturday, the subsidiary received a notice from State Grid Sichuan Ganzi Electric Power Co., informing it that its power supply would be suspended as of 9 a.m. on 19th June.
The impact is relatively small on the mining company, since the subsidiary accounts for about 3% of its revenues. However, by opting for relocation to Kazakhstan, BIT Mining is showing that it is ready to leave China if the authorities continue to close mining sites. The company said it was also investing in mining facilities in Texas.
Chinese authorities’ newfound hardline position on cryptocurrencies and mining is quite strange. On the one hand, they order the closure of mining sites and do not hesitate to be very critical of cryptocurrencies.
On the other hand, some of these mining companies, including BIT Mining, are partly owned by Chinese state capital. In addition, of the 26 sites invited to close, the majority of the sites are allowed to legally operate mining facilities within Sichuan’s hydropower industrial demonstration zones.
By moving some of its machines to Kazakhstan, BIT Mining is sending a clear message to the Chinese authorities. This stands in stark contrast to the strange message that the Chinese government is itself sending.
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