The fifth largest mining pool in the world is leaving China for Kazakhstan due to a lack of electricity

BTC.com, a large crypto mining pool operated by BIT Mining and owned by Chinese lottery service company 500.com, which is listed on the New York Stock Exchange, announced the successful relocation of its first batch of mining equipment to Kazakhstan.

BTC.com was founded by Jihan Wu and operated by Bitmain and Bitdeer until it was acquired by 500.com in February.. At the time of this writing, the pool is the fifth largest in the world, validates 10.4% of the blocks on the Bitcoin blockchain network.

The move comes after the state power grid in western Sichuan province informed the company that power supply to one of its local data centers will soon be shut down.In its announcement yesterday, BIT Mining stated:

“On June 19, 2021, the company’s subsidiary, Ganzi Changhe Hydropower Consumption Service Co. Ltd […] receive a notification […] of the Sichuan State Network Ganzi Electric Power Co. Ltd. […] to inform the Ganzi Changhe data center that its power supply will be cut off on June 19, 2021 at 9:00 p.m. Beijing time. Since then, the Ganzi Changhe data center has ceased operations. The data centers in Sichuan, including the Ganzi Changhe data center, contributed approximately 3% of the company’s total revenue in May 2021.

The fifth largest mining pool in the world is leaving China for Kazakhstan due to a lack of electricity
The fifth largest mining pool in the world is leaving China for Kazakhstan due to a lack of electricity

The intervention of the state network takes place in the middle of a Ongoing action by the Chinese state against the mining of cryptocurrencies, due to concerns about the mining industry’s carbon footprint, which runs counter to China’s decarbonization goals.

In areas like Inner Mongolia, once popular with cryptocurrency miners, The regional authorities have even set up a special hotline for the local public to directly report suspected illegal mining activitiesIn the midst of this pressure At least three mining companies, BTC.TOP, Huobi and HashCow, were recently forced to cease operations on the mainland.

The CEO of BIT Mining, Xianfeng Yang, made a gesture in this regard, Reaffirm that the company is committed to protecting the environment and reducing our carbon footprint. As part of our growth strategy, we have strategically expanded our international activities. Following our investments in cryptocurrency mining data centers in Texas and Kazakhstan, we are accelerating our overseas development of high quality alternative mining resources“.

While China was one of the first to crack down on crypto miners, Authorities elsewhere are raising concerns about energy-intensive mining sites, mostly less for climatic reasons than for effects on the local energy supply. a former government official argued that the mining of cryptocurrencies was one of the main drivers of the energy crisis in KyrgyzstanSimilar concerns have been expressed in the Caucasus and Iran.

In line with China, global regulators and non-profit organizations, Elon Musk made a notable intervention this year when he announced that Tesla would no longer accept BTC as payment for vehicles due to concerns about the high energy consumption of Bitcoin (BTC) mining.

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