Cryptocurrency News

Canaan Delivers 10K Mining Rigs To Various Kazakhstan Partners

Leading China-based crypto mining rig manufacturer has revealed it is distributing up to 10K mining rigs to different Kazakhstan-based crypto miners. The company sees this move as a step towards establishing itself as the world’s leader in crypto mining manufacturing.

A Move Towards Global Expansion

The mining rig manufacturer further revealed that it doesn’t have any outstanding mining rigs to deliver to the Asian nation, which means it has completed the first stage of deliveries. Part of the official statement from the company revealed that it had delivered more than 10k Avalonminer rigs to Kazakhstan as of December 31, 2021.

The company chief, Nangang Zhang, commented on the development, saying, “our successful partnerships with several Kazakhstan-based crypto miners is in line with our company goals of expanding our scope operations globally.” He also said, “part of our long-term goal is to incorporate crypto mining into our services. Thus, strengthening our relevance to the crypto industry.”

However, the official statement from the company never revealed the identities of its partners in Kazakhstan. In recent months, Canaan has been doing a lot of business with Kazakhstan-based crypto miners primarily because the central Asia country accommodated most of the crypto miners that left China.

Nevertheless, it hasn’t all been smooth sailing for these miners. Two months ago, Xavier (a famous local crypto mining firm) had to pause its operations following allegations that its mining activities were the cause of constant power outages in south Kazakhstan.

A Long-Term Objective

Last November, Canaan revealed that it had secured partnerships with four Kazakhstan-based crypto mining customers. The company’s official statement further announced that the companies were chosen based on the computing power they could afford them. These partners have a mining operating license from Kazakhstan’s energy ministry.

It also revealed that it would deploy the 1m TH/s computer mining facilities available to it before this month ends. While China has banned all crypto-related activities, it seems crypto mining rig manufacturers are exempted from the ban. Canaan’s Q3 2021 earnings report showed that it made a net gain of $73m (468m Yuan). This amount contrasts with a loss of $14m (87m Yuan) the company reported in its Q3 2020 report. 

The company’s Q3 2021 report is more than double its Q2 2021 report, where it made a profit of $26m (167m Yuan). Thus, indicating that the company is putting its business operations almost back to normal following China’s crypto ban around May 2021, which negatively affected its operations.   

Crypto Mining And Energy Issues

Many countries have had to stop the activities of crypto miners primarily because they cause continuous energy shortages, which affect residents. This week, Kosovo took similar drastic measures against crypto miners as residents groan following an epileptic power supply.

Kosovo authorities took such a decision following suggestions from a technical committee that looked into the epileptic power supply. Kosovo follows Iran, Russia, and Argentina, who were the first nations to take such a stance in late November 2021.

Leave a Reply

Your email address will not be published.