Canaan Expands Mining Operations in Kazakhstan Amid Power Deficit, Protests
China-rooted producer of coin minting equipment, Canaan, has announced it has entered into collaboration agreements with multiple crypto mining companies in Kazakhstan.
Canaan Secures Mining Agreements With Companies in Kazakhstan
In a press release published on Tuesday, the company revealed it had successfully installed the last batch of mining machines for the first phase of its deployment to Kazakhstan.
As of December 31, 2021, the Company had an aggregate of 10,300 AvalonMiner units in mining operations in the country.
“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.
Canaan is among numerous mining companies that sought to relocate their equipment to more favorable jurisdictions after the Chinese government launched a nationwide offensive against the mining sector in May of last year.
Some Crypto Miners Leave Kazakhstan as Rising Energy Prices Spark Protests
Kazakhstan, which maintains capped electricity tariffs and has taken steps to regulate the sector, initially welcomed miners and became an obvious choice for many of them.
A recent report revealed that some mining firms are already moving out of the country in search of destinations with a more stable power supply such as the U.S.
Meanwhile, the government of Kazakhstan has been exploring ways to deal with the electricity shortages, including by reviving a decade-old project to build a nuclear power plant.
The country, which is normally rich in energy resources, saw the eruption of anti-government protests in the first days of the new year, following an increase in the prices of natural gas.
In an attempt to bring the situation under control, President Kassym-Jomart Tokayev issued an order to limit gas, fuel, and food prices, blaming the government for the protests.
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?