NASDAQ-listed crypto mining hardware manufacturer Canaan has deployed 10,300 new AvalonMiner units to Kazakhstan to start growing its supply in the country.
After China passed strict laws against crypto mining, Kazakhstan became one of the get-away destinations where Chinese and international mining companies decided to set up shop.
This has had an impact on tax revenue to the central government as well as helping to expand the business footprint of manufacturers of dedicated mining equipment, such as Canaan Inc.
As the global hashrate for Bitcoin (BTC) has recovered, so has Canaan, which has decided to strengthen its ties to some of the country’s leading crypto mining firms.
Canaan is operating from Hangzhou, China, but may be looking to seek a new home given the county’s growing bellicose stance against crypto dealings of any sort.
Zhang Nangeng, the company’s CEO, was one of the few people to publicly condemn the ban on crypto mining in China.
Kazakhstan, though, has proven a welcoming destination, not just because of its geographical proximity but also because of the cheap electricity price there. Meanwhile, the Kazakhstan government has found crypto mining a lucrative industry to tax.
While the initial exodus from China brought immediate benefits for Kazakhstan, power cuts have been severe. One argument is that the country attracted both licensed and underhand operators, with underground mining farms adding a disproportionate strain on the power grid.
Kazakhstan has done two things to address the issue. First it vowed to bring more power online and secondly it began cracking down on illegal operations.
Canaan is not cowered by any temporary snags Kazakhstan-based miners may hit, as the country has a strong incentive to keep taxing its BTC miners while suspending illegal operators.