Chinese Bitcoin Miners Consider Moving Their Facilities Abroad

Bitcoin for China is gradually becoming a “Butcoin”, a forbidden fruit. As it once happened with China’s censorship of Google Alphabet (GOOGL) awhile ago, although the immediate reaction was crashing and quite dramatic for the company’s stock performance, after several years of such odd coexistence of authoritarian regime and the free search engine, nothing dramatic for Google actually occurred. There is a growing common belief that Bitcoin's demise was largely overplayed. According to a report from The Washington Post, Chinese miners are now focused on expanding to other geographies, including the U.S.

Thus, Shenzhen-based Bitcoin miner BIT Mining (BTCM) said it is shipping some of its mining equipment outside China.

Namely, the company reported that 320 mining machines with a capacity of 18.2 PH/s had been delivered to a facility in Kazakhstan, which is expected to be fully operational by June 27. A second and third lots, totaling 2,600 mining machines with a maximum total hash rate capacity of 102.3 PH/s, are also expected to be delivered to Kazakhstan before July 1, 2021.

The company’s alternative strategy was quickly elaborated after it received a notice from the State Grid Sichuan Ganzi Electric Power supplier notifying them that the power supply would be suspended on June 19.

BIT Mining’s Chinese subsidiary was one of the 26 Bitcoin miners that were forced to shut down their operations by local authorities last Sunday after a Chinese government crackdown on crypto mining and trading in the region escalated.

“Following our investments in cryptocurrency mining data centers in Texas and Kazakhstan, we are accelerating our overseas development for alternative high-quality mining resources,” CEO of BIT Mining said.

Basically, this story illustrates what exactly will happen with many inland China’s crypto miners at the end of the day. And this drastically alters the whole vicious story and it’s likely outcome. As a result, many cryptos are in the apparent recovery mode today. Bitcoin is trading 17% higher at $33,532 at the time of writing, so many claims that it is going to plunge to $10K or below instantly perished.