Bitcoin Mining Equipment Manufacturer Canaan Defends Against Pressure in China

Canaan, the major manufacturer of Chinese bitcoin mining machines, has opposed China's recent crackdown on the industry. Representatives of Canaan Inc., a leading Chinese manufacturer of bitcoin mining rigs, argued that the industry reduces energy waste, helps create jobs and nurtures the local economy, as China recently addressed the practice. According to Reuters, Canaan CEO Zhang Nangeng said during a revenue conference call, "For-profit miners prefer regions with low electricity prices, which indicates oversupply and possible energy waste." Said. “Bitcoin miners also help create jobs in poor areas and contribute to tax coffers.” Nangeng also argued that bitcoin mining rigs that use fossil fuels hinder China's green efforts, while those powered by renewable and sustainable resources should not be affected by the pressure. Canaan's comments followed a May 21 statement by the Financial Stability and Development Committee of the State Council of China. The statement said the government "will address the mining and trading behavior of bitcoins and will resolutely prevent the transfer of individual risks to the community." China's efforts to tighten bitcoin mining have apparently affected activity. Also, Nangeng said the uncertainty caused by such policies has caused miners to leave China, causing some of Canaan's customers to stop placing new orders for mining equipment. According to Reuters, overseas markets accounted for 78.4% of the Chinese bitcoin mining rig manufacturer's revenue in the first quarter of 2021 – compared to just 4.9% in the same period 2020. A country the size of China that bans bitcoin mining might look like this: a huge downside for the network at first. However, some, including Coin Metrics co-founder Nic Carter, argued the opposite – posting a video explaining his reasoning. Essentially, he claimed that Bitcoin's carbon emissions were r by forcing mining out of China. it might be

Join the Discussion

  • BrokerEUR/USD
    City Index 0.5pips (fixed) margin: 3.33%
    ETX Capital 0.6pips (variable) margin: 3.33%
  • Back to top