Bitcoin mining maker Canaan expands its footprint in Kazakhstan

Bitcoin (Bitcoin) Mining hardware manufacturer Canaan is expanding its business in Kazakhstan after signing new strategic partnerships with several crypto mining companies in the country.

NASDAQ listed company Announce On Tuesday, as of December 31, 2021, it has deployed 10,300 AvalonMiner devices in Kazakhstan, completing the first phase of deployment in Central Asian countries. Canaan Zhizhi is cooperating with local companies as part of its business expansion plan outside of China. However, the company declined to list any of its local partners.

Although Canaan is headquartered in Hangzhou, China, the company is looking at expanding beyond China Beijing’s massive crackdown on crypto mining In 2021, Canaan Zhizhi CEO Zhang Nangeng, spoke In the July earnings call, they opposed the mining ban, telling investors that crypto miners can make better use of stranded electricity and make a positive contribution to employment and the local economy.

As China stifles the crypto mining industry, neighboring Kazakhstan is eager to fill this gap and provide displaced miners with cheap and abundant coal. By June 2021, The world’s fifth largest mining pool Opened a shop in Kazakhstan. The next month, Kazakhstan accounts for nearly one-fifth The world’s Bitcoin mining output.

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China’s ban on Bitcoin mining caused a sharp drop in the network’s hash rate, but this situation quickly reversed after the displaced miners set up new operating bases. After six months of recovery, the hash rate of the Bitcoin network hit a record high on January 2.

As for Canaan, the company record It will achieve strong growth in 2021, and net income will hit a post-IPO record high. According to the unaudited financial results announced in November, the company’s third-quarter net income totaled US$204.5 million, a year-on-year increase of 708.2%.