BIT Mining Picks Kazakhstan As New Mining Base

BIT Mining, a cryptocurrency mining company that recently stated it will be expanding outside of China, aims to buy 2,500 Bitcoin miners for deployment in Kazakhstan.

BIT Mining Goes To Kazakhstan

BIT Mining announced on Wednesday that it had agreed to buy 2,500 Bitcoin (BTC) mining equipment for $6.6 million. The company has already installed 3,819 BTC miners in Kazakhstan data centers, with another 4,033 on the way. The addition of the recent mining acquisition is projected to enhance BIT Mining’s hash rate capacity to around 458 petahashes per second once everything is in place.

The company dispatched its first consignment of mining machines to the central Asian country in June, saying at the time that it expected to deliver another 2,600 before the start of July.

Based in Shenzhen, it has stated that it intends to expand its activities outside of China in reaction to the government’s recent anti-mining crackdown. Following the decision by the State Council’s Financial Stability and Development Committee, which restricted BTC mining due to financial risk concerns, many Chinese businesses have reportedly shut down.

Following its decision in May to build and manage a data center in Kazakhstan, the New York Stock Exchange-listed company recently received $50 million in a private funding to expand its international data center presence.

Related article | Bitcoin Hash Rate Recovers To 2020 Levels, A Long Ways To Go

As the regulatory environment in China appears to become less favorable, several mining companies, such as BIT Mining, have been looking for other nations to conduct operations. The crackdown could be an indicator that the government is testing the waters for a bigger crypto prohibition, according to BTC maximalist and Ballet CEO Bobby Lee, who recently told Cointelegraph that the crackdown could be an indication that the government is testing the waters for a larger crypto ban. OKEx and Huobi both plan to dissolve Chinese-based corporate organizations, suggesting that crypto businesses are picking up on the regulatory backlash.

While some of the miners forced out of China may seek refuge in Texas, Kazakhstani officials appear to be courting cryptocurrency enterprises by permitting local banks to register accounts for cryptocurrency transactions. Last month, Canaan, a major mining company, announced that it had begun mining BTC in Kazakhstan. Despite this, or perhaps as a result of the rush to create new operations, the country has announced that greater taxes would be imposed on miners beginning in January.

BIT Mining also made a $25 million investment in May to build a mining facility in Texas. The company has maintained that it is monitoring current conditions in the market for cryptocurrency mining machines and will consider cost-efficient mining machine acquisitions on an opportunistic basis.

BTC/USD retests $40k. Source: TradingView

Related article  | Why Bitcoin Doesn’t Need Musk, Saylor, Or Anyone Else

Featured Image from Getty Images, Charts from TradingView