About 70% of Chinese cryptocurrency mining enterprises have already turned off their equipment, and by June 30, their share will approach 90%. Kevin Zhang, vice president of business development at the Foundry mining company, spoke about this.
2) They estimate that roughly 70% of the #bitcoin mining capacity in China has gone offline and by the end of this month, it’ll be closer to 90% offline.
👇👇
— Kevin Zhang (@SinoCrypto) June 23, 2021
According to him, in Sichuan province, some power plants ordered miners to dismantle mining devices and all infrastructure equipment (racks, transformers, etc.) in one to two weeks.
Zhang called this decision “a blow in the gut.” He noted that the majority of enterprises, especially large ones, received permits to operate and proper guarantees.
“Now they have been betrayed. At the same time, many small farms can escape punishment by staying out of sight, ”he added.
Foundry vice president stressed that most of the equipment installed in Chinese enterprises is not suitable for operation abroad, since it does not comply with the norms of Western countries.
5) Before resellers and opportunists get way too ahead of themselves for scooping up discounted electrical equipment, they should consider that most of the gear wont be up to code for established Western countries (not UL Listed or CE Certified, aluminum transformers vs copper)
— Kevin Zhang (@SinoCrypto) June 23, 2021
According to Zhang, the “great ASIC exodus” will not be as seamless as some in the community think. The inadequacy of Chinese equipment to Western standards is just one of many problems.
“Hosting facilities outside of China were overbought and in short supply even before the regulators said. In addition, expectations regarding hosting conditions are highly skewed, ”he said.
Zhang stressed that the cost of hosting overseas is higher and the deployment takes longer. Other deposit requirements also apply outside of China.
7) Examples of misaligned expectations:
Pricier Hosting Costs — $0.06+ and rising
Longer lead times — 6-9 months to build
Deposits — Chinese hosting clients rarely pay more than 1 month upfront, if anything at all
US/China Tariffs — yeah, that 25% whammie is still there
👇👇
— Kevin Zhang (@SinoCrypto) June 23, 2021
Not all Chinese miners have been “taken by surprise” – some of them have already expanded overseas operations, according to a Foundry VP. Zhang said that this process only accelerated after the introduction of a ban on cryptocurrency mining by the authorities of Inner Mongolia.
Zhang noted that Chinese miners are actively exporting equipment abroad. According to him, we are talking about tens of thousands of ASIC devices.
9) Chinese miners have been quick to mobilize… one colleague sent some technicians down to Shenzhen, to focus on 2nd hand miner testing, repair, cleaning, and repackaging for exportation. He has cleaned and shipped out over 20,000 ASIC’s in the last 2 weeks pic.twitter.com/92pAynQigl
— Kevin Zhang (@SinoCrypto) June 23, 2021
“One colleague sent several technicians to Shenzhen to test, repair, clean and pack the used miners. They have exported over 20,000 ASICs in the past two weeks, ”he wrote.
Not only mining companies are planning to leave China, but also manufacturers of devices for mining cryptocurrencies. According to journalist Colin Wu, the giant Bitmain has temporarily suspended the sale of equipment and announced a “complete move abroad.” At the same time, some high-ranking officials will allegedly also leave the country.
In addition, Bitmain has announced a full overseas transfer, and some high-level employees are moving overseas.
– Wu Blockchain (@WuBlockchain) June 23, 2021
On June 22, BIT Mining Limited, a mining company listed on the New York Stock Exchange, also reported on the successful delivery of the first batch of equipment for mining cryptocurrencies to Kazakhstan.
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