After years of ASIC manufacturing, Canaan expands to Bitcoin mining in Kazakhstan – mining bitcoin news
Canaan Inc., the Beijing-based maker of crypto mining rigs, has announced that the company plans to mine cryptocurrencies in Kazakhstan. The company says the company’s next generation Avalonminer mining rigs are already in service in the world’s largest landlocked country.
Canaan joins the bitcoin mining battle
Publicly traded company Canaan (Nasdaq: CAN) has announced that it is entering the bitcoin mining business with its own self-operated mining business. Canaan is one of the oldest Bitcoin mining hardware manufacturers in the world since it was founded by Nangeng Zhang in 2013.
In the company’s early years, FPGA miners were developed dedicated to Bitcoin’s SHA256 consensus algorithm. Fast forward to today and the company is one of the leading manufacturers of application-specific integrated circuits (ASIC) with Bitmain, Microbt and Ebang.
On Wednesday, the Beijing-based company announced that it will be using its Avalonminers to mine Bitcoin in Kazakhstan. The move follows the opening of an ASIC mining rig service center in the transcontinental country.
Wednesday’s announcement states that the move to begin mining bitcoin after expanding the company’s manufacturing process is “the next logical step”. Entering the mining industry will “optimize its revenues and strengthen its inventory management and supply chain capabilities,” the company said.
“We believe our Bitcoin mining business will help us improve our financial performance and expand our business scope and customer base,” said Canaan’s founder Zhang during the announcement. “As we incorporate more industrial resources into our operations, we believe this division will allow us to revitalize our mining equipment inventory, protect against bitcoin volatility, and secure our inventory during the market boom.”
Some of Canaan’s manufacturing competitors have been mining for years, particularly Bitmain. China-based mining rig company Bitmain has been running a pool called Antpool since 2013. Today Bitmain’s Antpool is one of the largest pools dedicated to hashrate the BTC chain.
Canaan says it will also benefit from fully utilizing the availability of its mining equipment in stock for active use in its mining operation at low electricity tariffs, thereby maximizing its computing power at this point in time.
“On the other hand,” concluded Canaan, “the mining business will benefit from utilizing the processing capacity of older machines as market activity increases. The net result will be a significant improvement in inventory planning and supply chain optimization throughout the year and will not be affected by Bitcoin price. “Kanaan added:
Finally, in the bitcoin mining company, the company enables Canaan to directly accumulate bitcoin, which is now widely accepted as an investable asset class and therefore has the potential for significant upside for Canaan.
What do you think of Canaan’s entry into Bitcoin mining after mining rigs have been made since 2013? Let us know what you think on this matter in the comments below.
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