Canaan, the manufacturer of Bitcoin mining hardware, has one of the largest mining hardware providers around the world announce They are making their first foray into Bitcoin mining themselves by setting up their mining operations in Kazakhstan.
“We believe that our self-running Bitcoin mining business will help us improve our financial performance as well as expand our business and customer base,” Canaan Chairman and CEO Nangeng Zhang said in the announcement. “As we integrate more industry resources into our operations, we believe this business segment will enable us to revitalize our mining machine inventory, protect us from bitcoin volatility and ensure our stock is adequate during market volatility.”
According to the announcement, Canaan’s new business diversification strategy advances the company’s strategic plans for 2021, which were announced earlier this year. The Chinese ASIC maker will now venture into bitcoin mining in hopes of reaping more returns if demand for its mining rigs drops.
Earlier this month, Canaan expanded its business by founding The first overseas after-sales service center. The center, also established in Kazakhstan, provides the company’s domestic customers with services such as machine testing, warranty, maintenance, technical advice and support.
The bitcoin miner manufacturer is headquartered in China and produced the world’s first ASIC machine in 2013, and has been in business ever since. However, Canaan is now forced to expand its business models and penetrate foreign markets, likely due to its home country The last negative position Towards the industry, after the vision Her own pleas Against this campaign fall on deaf ears.
After the Chinese State Council call For a renewed crackdown on bitcoin mining and trading in the country, many companies in the industry have faced challenges. For example, BIT Mining – the Bitcoin mining company behind the BTC.com group, which accounts for roughly 10% of the total Bitcoin network hash rate – recently saw some of its operations shut down. As a result, the company started Moving its mining machinery abroad, as well as to Kazakhstan.
Likewise, bitcoin trading and related activities have not been spared the crackdown across China. The country’s basic internet services, such as Baidu like Google and Twitter-like Weibo, for example, have recently become Censoring keywords related to bitcoin exchange. And this week, the People’s Bank of China (PBOC) released he met With the country’s leading financial institutions, including payment services giant Alipay, to demand that citizens stop doing business with bitcoin exchanges and spot merchants altogether.