Asset manager VanEck on Friday said it has added Japan to the list of countries pursuing Bitcoin mining with government resources.
It follows a deal secured by Bitcoin miner maker Canaan with a major Japanese utility to use Avalon rigs to stabilize regional grid load.
Japan continues to witness a notable crypto adoption under the newly elected Prime Minister Sanae Takaichi. Japanese financial regulator seeks a major overhaul to integrate crypto into traditional banking.
Japan Joins Government-Backed Bitcoin Mining List
Matthew Sigel, head of digital assets research at VanEck, revealed that they have finally added Japan to the list of countries mining Bitcoin with government resources.
This makes Japan the 11th country globally where is government-aligned. The list excludes the United States, but it may become possible under US President Donald Trump.
Sigel claimed rumors were circulating for many years that Tokyo Electric Power Company (TEPCO) was quietly doing Bitcoin mining. However, no confirmation ever emerged.
The Japanese government has partial ownership in all 10 regional utilities, with no utility being fully private. This makes it the 11th country globally where the mining is state-aligned.
Canaan’s Bitcoin Mining Deal with a Major Japanese Utility
Matthew Sigel highlighted Bitcoin mining machine maker Canaan’s 4.5 MW order from a Japan-based utility.
Becoming the reason behind VanEck considering Japan under the government-sponsored list.
Weeks after announcing its largest-ever order and narrowly avoiding Nasdaq delisting, Canaan won the 4.5 MW deal.
Under the deal, the Japanese utility will use the Avalon mining rigs to stabilize regional grid load.
It is a well-known strategy used by electric power utilities recently to reduce waste. Bitcoin miners act as electric grid stabilizers by turning on during times of excess electric power.
Canaan (CAN) stock has skyrocketed more than 14.50% on Friday. At the time of writing, the stock trades at $1.42 USD.
The 24-hour low and high were $1.36 and $1.48, respectively. Furthermore, the trading volume was 24 million, indicating a decline in interest among traders.
BTC Price Rebounds Amid Crypto Stocks Rebound
Bitcoin mining shares, including MARA Holdings (MARA), Riot Platforms (RIOT), and CleanSpark (CLSK), opened higher today.
Core Scientific (CORZ) led gains among stocks. CORZ stock price was trading 4.82% higher at $21.74 at the time of writing.
The move comes as the Bitcoin price rebounded from $106.5K to above $110K amid buy-the-dip sentiment and optimism among derivatives traders.
BTC price was trading at $109,985, 1.70% higher at the time of writing. The intraday low and high were $106,376 and $110,599, respectively.