Digital Assets: BTC.com, A Major Crypto Mining Pool, Relocates To Kazakhstan From China

June 22, 2021 | Digital Assets, News
https://dailyalts.com/wp-content/uploads/2021/06/bitcoin-2722396_640.jpg

The move follows the suspension of its power supply by the state grid in western Sichuan, China.

BTC.com, a significant mining pool said to be the world’s fifth-largest, has shifted its first batch of 320 mining machines to Kazakhstan from their earlier location in western Sichuan province in China following a withdrawal of power supply by the grid. (Coin Telegraph)

In an announcement on Monday, BIT Mining Limited (NYSE: BTCM), which owns the entire mining pool business operated under BTC.com, said its indirectly held subsidiary, Ganzi Changhe Data Center, received a notice on June 19, 2021, from State Grid Sichuan Ganzi Electric Power Co., Ltd., informing a suspension of its power supply effective 9:00 pm Beijing time, June 19, 2021.

The data center duly suspended its operations.

The first batch of machines will commence operations in Kazakhstan by June 27, 2021. A second and third batch, totaling 2,600 machines are expected to be delivered to Kazakhstan before July 1, 2021, BIT Mining said. The remaining machines are expected to be shifted to “overseas” data centers in the forthcoming quarters.

Seismic shift?

Meanwhile, a report by Glassnode has indicated that Tuesday’s meltdown in bitcoin to sub-$30K levels may have been the effect of miner capitulation in China.

The Glassnode report commented that the “seismic mining shift” taking place in China could lead to forced crypto sales by relocating miners to “obtaining capital to facilitate and fund logistics.” It also anticipated that many miners may wind up their businesses entirely.

On June 18, the Sichuan province ordered its 26 largest crypto mining farms to stop operating, according to Chinese media.

Crypto mining: China’s loss, the US’ gain

On a more positive note, Brandon Arvanaghi, a former security engineer at crypto exchange Gemini, said the mining ban in China showed that bitcoin is working and that it was “making nations shiver in their boots.”

In this regard, Arvanaghi also likened China’s anti-mining moves to its animosity towards Western tech firms such as Facebook (NASDAQ: FB) and Google (NASDAQ: GOOGL).

Arvanaghi said that the industry would move from China to receptive nations such as the United States, and Texas in particular.

“We have governors like Greg Abbott in Texas who are promoting mining. It is going to become a real industry in the United States, which is going to be incredible,” he added.

Bitcoin slices through $30,000

CNBC reported that bitcoin had a wild ride on Tuesday, tumbling below the highly significant support level of $30,000 at one point.

At one point, bitcoin had erased all of its 2021 gains and then some.

However, bulls looking for bargains likely entered the arena and walloped the price back above $33,000.

Related Story:  Miami Mayor Suarez Wooing Crypto Miners With Promise Of Cheap Nuclear Power

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