Fifth largest Bitcoin miner BTC.com leaves China for Kazakhstan

Big Chinese crypto mining pool, BTC.com, operated by Bit Mining and owned by the NYSE-outlined Chinese lottery service company 500.com, has started to relocate their mining operations to Kazakhstan.

Following the company was notified by the state grid in western Sichuan province that the energy source serving a person of its area facts centers would be suspended imminently, it started out relocating a 1st batch of mining equipment to Kazakhstan.

BTC.com is at present the world’s fifth largest mining pool, validating 10.4% of blocks on the Bitcoin blockchain. The miner was launched by Jihan Wu and operated by Bitmain and Bitdeer until eventually 500.com bought their palms on the firm this February.

Bit Mining mentioned the pursuing when it introduced the news on Monday:

“On June 19, 2021, the Company’s indirectly held subsidiary, Ganzi Changhe Hydropower Use Service Co. Ltd […] received see […] from State Grid Sichuan Ganzi Electrical Ability Co., Ltd. […] informing Ganzi Changhe Details Center, that its electrical power offer would be suspended, efficient 9:00pm Beijing time, June 19, 2021. Ganzi Changhe Information Middle has because suspended its functions. Details centers in Sichuan, which include the Ganzi Changhe Data Middle, contributed somewhere around 3% of the Company’s full revenues in the thirty day period of May perhaps 2021.”

Carbon footprint

China’s current crackdown on crypto mining is driven by issues of the Chinese condition about the industry’s carbon footprint, which undermine its environmental targets.

In other provinces, these as Inner Mongolia, at minimum a few mining corporations, BTC.Top, Huobi and HashCow, had to prevent mining pursuits for similar good reasons.

Little bit Mining is also functioning mining facilities in Texas and have pressured its ambition to decreasing their footprint. Their Main Executive Officer, Xianfeng Yang has explained that:

“We are committed to shielding the natural environment and reducing our carbon footprint. We have been strategically growing our functions abroad as part of our advancement method. Pursuing our investments in cryptocurrency mining facts centers in Texas and Kazakhstan, we are accelerating our abroad improvement for substitute large-top quality mining assets.”

Limited-expression detrimental, lengthy-time period good

It would seem that China is much more severe about this anti-crypto crackdown than it has been in the past, and the impacts could be a lot more lasting and further. Even though we are viewing an speedy result on the crypto marketplaces fueled by worry, there could be a web prolonged-expression positive if it prospects to mining routines spreading to additional nations. In addition, there’s no solid, direct line from mining exercise to the current market cost of Bitcoin.

Subsequent the information in the weekend, Bitcoin charges plunged soon to beneath $30,000, even so it was capable to recover shortly immediately after and is at present investing at all around $34,000.