The exodus of Bitcoin miners from China has begun.
Following China’s central bank’s crypto crackdown, Shenzhen-based BIT Mining has shipped the first tranche of its mining machines to Kazakhstan.
China, which is home to more than half of the world’s Bitcoin miners, is attempting to eradicate unofficial crypto activity by imposing restrictions on mining and trading.
BIT Mining is exiting China after being informed by the local energy supplier that power to its Shenzhen operation would be cut off.
The mining company confirmed to the US stock exchange that it has shipped 320 machines to Kazakhstan, with plans to ship another 2600 by the end of this month.
Additionally, BIT Mining’s contingency plans include the establishment of a new mining hub in Texas.
BIT Mining was one of 26 Bitcoin mining operations on Sichuan’s shutdown hit list released last Thursday.
Until now, latest data estimates indicate that approximately three-quarters of all Bitcoin mining has occurred in China, primarily in four provinces: Sichuan, Xinjiang, Inner Mongolia, and Yunnan.
Bitcoin mining consumes a tremendous amount of energy, which has recently cast doubt on the market’s green credentials and resulted in some price volatility.
Kazakhstan, with its abundant coal reserves, appears to be an ideal alternative to China’s hydropower and coal-rich provinces.
Central Asia, Eastern Europe, the United States of America, and Northern Europe are also being promoted as viable alternatives for miners fleeing China.
Cryptocurrencies continue to face significant pressure from China, which has been signaling a more aggressive push to restrict their use for months.
The People’s Bank of China summoned Alipay, the popular online payments platform run by Jack Ma’s Ant Group, and five major lenders on Monday, instructing them to “thoroughly investigate and identify” cryptocurrency exchanges and dealers in order to halt cryptocurrency trading.
China’s escalating crackdown is also intended to bolster the government-backed digital yuan initiative, which authorities hope to implement in order to control money flows.
Bitcoin and other cryptocurrencies have plummeted in value over the last seven days as a result of China’s central bank’s actions.