Canaan defends Bitcoin mining in China

The mining-equipment maker Canaan Creative has spoken out against the indiscriminate crackdown on mining in China, Reuters reports.

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The company said that this business helps to use electricity more efficiently and supports employment and regional economies.

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During a financial-results conference call, Canaan CEO Nangeng Zhang said that cryptocurrency mining using fossil fuels undermines the government’s environmental efforts, but those who use clean energy should not face repression.

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“Mining companies prefer regions with low electricity prices, which indicate oversupply and potential losses,” he added.

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He also said that Bitcoin miners “help create jobs in poor areas and contribute to the budget.”

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Zhang’s remarks followed statements by authorities about a possible ban on mining in the country.

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Officials in Sichuan Province, one of the world’s Bitcoin mining hubs, held a seminar on using surplus hydroelectric power in the context of the ban. Media reported that the meeting with local miners took place in a cordial atmosphere, but without any resolutions.

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Under these circumstances, the company is expanding into overseas markets.

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Canaan’s share of sales outside China exceeded 78% in the first quarter of 2021.