Bitcoin mining maker Canaan expands presence in Kazakhstan – The Bharat Express News

Companies

Bitcoin (BTC) mining hardware maker Canaan Inc is expanding its presence in Kazakhstan after signing new strategic partnerships with several crypto mining companies in the country.

The Nasdaq-listed company said on Tuesday it had deployed 10,300 AvalonMiner units in Kazakhstan as of December 31, 2021, finalizing the first phase of its deployment in the Central Asian country. Canaan is partnering with local businesses as part of its business expansion plans outside of China. However, the company declined to list any of its local partners.

Although Canaan is based in Hangzhou, China, the company is considering expansion outside of its home country following Beijing’s massive crackdown on crypto mining in 2021. Zhang Nangeng, CEO of Canaan, s he spoke out against the mining ban in a July results call, telling investors that crypto miners make better use of stranded electricity and positively contribute to jobs and the local economy.

As China stifles the crypto mining industry, neighboring Kazakhstan has rushed to fill the void, offering displaced miners cheap and plentiful coal. In June 2021, the fifth largest mining pool in the world had moved to Kazakhstan. The following month, Kazakhstan accounted for nearly a fifth of Bitcoin’s global mining output.

Related: Kazakhstan to decide whether or not to launch CBDC by end of 2022

China’s ban on Bitcoin mining caused the network’s hash rate to drop sharply, but this was quickly reversed after the displaced miners established new bases of operations. After a six-month recovery, the Bitcoin network hash rate hit a new all-time high on January 2.

#Bitcoins the hash rate broke a new all-time high yesterday! pic.twitter.com/TzEGE3sNRF
– Bitcoin Archive (@BTC_Archive) January 3, 2022

As for Canaan, the company saw tremendous growth in 2021, with net income peaking after the IPO. The company’s net income totaled $ 204.5 million in the third quarter, up 708.2% from the same period a year earlier, according to unaudited financial results released in November.