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One of the world’s largest ASIC machinery firms, Canaan, has made public its plans to set up shop in Central Asia’s Kazakhstan. The move comes following China’s unexpected turnaround of facing out bitcoin mining activities within its mainland.
Canaan’s CEO Nangeng Zhang stated that the startup plans to boost mining rig sales and improve its BTC mining operations by expanding its reach to other zones in Asia. Speaking in a recent press release, the CEO said,
“As we integrate more industry resources into our operations, we believe this business segment will enable us to revitalize our mining machine inventory, shield us from bitcoin volatility, and ensure our inventory sufficiency during market upturns.”
Are Bitcoin Miners Exiling to Kazakhstan?
Canaan’s CEO discussed the company’s plans to offer after-sale service in the region, including technical consultations, machine maintenance, and testing. He termed the expansion as a way to support Canaan’s growing global customer base. The startup also revealed that approximately 78% of its sales in 2021 have come from overseas regions.
Nonetheless, allegations have recently resurfaced, stating that many bitcoin miners are moving to Kazakhstan. In addition, several mining firms have announced migration to the Central Asian region, with several of them already underway with their operations.
Cited from an anonymous source, miners migrate their tools to the Central Asian region ‘overnight.’ The actions somewhat certify that the region is a getaway for the panicking bitcoin miners on China’s mainland.
Kazakhstan is popular for its cheap electricity rates and being in the top 5 bitcoin mining countries worldwide. According to research from the University of Cambridge, the country takes up 6% of the world’s bitcoin hash rates in the BTC mining map. As a result, the region has perfect conditions for crypto mining activities, and mining firms are hastily setting their operations within its borders.
China Upsets BTC Miners
The recent crypto mining crackdown in China has caused mass panic in the crypto-verse. Bitcoin dipped to a fortnight low of $31K following China’s decision to shut down several crypto mining firms. Additionally, the country also scrapped crypto-related services from banks such as Alipay.
CryptoCompare CEO Charles Hayter said that the country is used to messing around with crypto activities, stating that bitcoin catches flu when the country’ sneezes.’ Moreover, he further explained that it is a recurring story that keeps coming up as the country is trying hard to regulate cryptocurrency.
The country’s crackdown has subsequently led to a decline in bitcoin mining hash rates globally.