Hardware manufacturer Canaan is expanding its crypto mining operations in Kazakhstan. The company is now cooperating with a number of mining firms there and has already deployed over 10,000 pieces of hardware despite the country’s challenges with electricity supply. Increased energy prices have also provoked protests that could potentially affect the industry.
Canaan secures mining deals with companies in Kazakhstan
China-rooted producer of coin minting equipment, Canaan, has announced it has entered into collaboration agreements with multiple crypto mining companies in Kazakhstan. Amid an ongoing crackdown on the crypto mining industry in the People’s Republic, the Central Asian country has become a magnet for miners with its low electricity rates and generally friendly attitude.
In a press release on Tuesday, the company revealed that it has successfully installed the latest batch of mining machines for the first phase of its deployment in Kazakhstan. Noting that it continues to deploy additional computing power in line with its plan to expand mining, Canaan detailed:
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 major local mining farms, but also marks our big strikes in our development of Bitcoin mining business,” commented Canaan CEO Nangeng Zhang. “By partnering with mining companies, we are delighted to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital asset industry,” added the leader.
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. The list includes names like Bitfufu, a mining entity backed by another major manufacturer of application-specific integrated circuit (ASIC) rigs, Bitmain.
Some cryptocurrency 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 has become an obvious choice for many. However, the influx of mining companies last year caused a growing energy deficit to exceed 7% in the first three quarters of 2021.
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, normally rich in energy resources, saw anti-government protests erupt in the first days of the new year, following a rise in natural gas prices. The unrest could potentially affect the energy-intensive mining industry and members of the international crypto community are already Warning minors to ensure their safety.
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. The cabinet of ministers has resigned. 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.
