Canaan expands crypto mining operations in Kazakhstan

Canaan, which is a leading Bitcoin mining hardware company, announced its strategic collaboration with crypto mining firms in Kazakhstan to bolster the joint mining business in the region. 

Canaan enters into strategic alliances with Kazakh crypto mining firms

Canaan on Tuesday announced that it had successfully deployed 10,300 AvalonMiner units in Kazakhstan. As of December 31st, 2021, the company had officially finalized phase one of its deployment trajectory in the region. 

According to the press release, Canaan will be entering into strategic alliances with multiple crypto mining firms as part of its expansion plan. The company, however, has not listed the names of any local firms that it intends to collaborate with. 

“The deployment of over 10,000 mining machines not only deepens our collaboration with leading local mining farms but also marks our great strikes in our cultivation of the Bitcoin mining business. Joining hands with mining firms, we are excited to leverage each of our respective strengths and resources to maximize profits and capitalize on the growth of the digital assets industry.” As stated by Nangeng Zhao, Chairman, and CEO of Canaan. 

Founded in 2013, Canaan is a Nasdaq-listed Bitcoin mining manufacturer company that focuses on ASIC high-performance computing chip design and research to spearhead the development of crypto mining equipment.  

Kazakhstan emerges as a leading spot for stranded Bitcoin miners

Kazakhstan has emerged as one of the top spots for Bitcoin mining, after Russia and the USA. Following crypto clampdown in China, many ousted Bitcoin miners found refuge in Kazakhstan, where the region’s cheap electricity prices acted as a catalyst for them to mine Bitcoin with minimum external intervention. 

The prices of electricity in Kazakhstan are the lowest as compared to other countries. The average electricity consumption in the region amounts to nearly $0.041 per kWh for households. 

Recently, the country has also been facing frequent electricity shortages owing to extensive crypto mining practices that are being conducted in the region. According to the reports issued by the energy ministry of Kazakhstan, the country’s electricity demand jumped 8% in 2021, fueling continuous power blackouts in the region.