Chinese Mining Companies Continue Shift to North America
Despite a ban on related activities on their home turf, Chinese companies remain attracted to the crypto mining trade hence their quest to continue pursuing the interest even outside the shores of China.
Beijing has driven out most of China’s cryptocurrency mining activities this year in a move that has seen the trade’s attention driven to other parts of the world like North America and particularly the United States which now seems to lead market share. Aside from the environmental impact their mining could have, China’s crackdown on cryptocurrencies in general is as a result of the state’s view that they are a financial security that cannot be technically regulated.
Meanwhile, the driven minders are finding a new home mostly in the US. Some of the recent crypto mining developments related to Chinese companies include The9 Limited saying it has leased 32MW of cryptocurrency mining infrastructure to run 10,000 Bitmain S19J miners to be deployed in the US by Q2 2022.
The Chinese Internet company will be carrying out the agreement with operator Compute North through its wholly-owned subsidiary, NBTC Limited. The planned deployment is an addition to another 14,000 Bitmain S19J miners that are set to be deployed in other countries like Canada starting next month. According to Zhifang Cai, CEO at NBTC, the total output of hash rate expected afterwards is 2,160PH/S.
Also taking delivery from Bitmain in the next month is Hello Pal, the international live-streaming, language learning and social-crypto platform, which last week announced it has secured locations in North America for its Antminer L7 machines.
Through its partner, Shanghai Yitang Data, Hello Pal says it continues to sell its existing Antminer L3+ mining rigs in China while investing in the new mining rigs majority of which are to be located in New York. According its founder, KL Wong, the relocation to North America is for long term stability in crypto mining operations and for future crypto integration plans into the social network site.
For Chinese edtech company, Nasdaq-listed Meten Holding Group, the plan is to venture into purchasing mining machines and non-fungible token assets for operations in the U.S. or Canada or build own mining farm, according to a September regulatory filing.
Another China-based crypto mining company that made some moves to get more U.S. exposure of late is the emerging marketing and solution provider based on blockchain and big data, SOS Limited, whose stock has been underperforming in comparison to its competitors. The company recently developed blockchain operations in the U.S., through a joint venture with Niagara Worldwide which includes a 150MW of electricity to support the company’s U.S. mining activities.
While the US is becoming the new destination for crypto miners due mainly to friendly policies, there have been calls for a ban on “energy intensive” crypto mining in parts of Europe.
Olusegun Ogundeji writes on tech-related issues including from the crypto/Blockchain space.
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