About 70% of Chinese cryptocurrency mining operations have already shut down their equipment, and by June 30 their share will be close to 90%, said Kevin Zhang, Foundry’s vice-president for business development.
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 compelled miners to dismantle mining devices and all related infrastructure (racks, transformers and other) within one to two weeks.
Zhang called this decision a “gut punch”.
The Foundry vice-president stressed that most of the equipment installed at Chinese facilities is not suitable for operation abroad, as it does not meet Western standards.
«Now they’ve been betrayed. At the same time, many small farms may avoid punishment by staying out of sight,» he added.
The Foundry vice-president emphasised that most of the equipment installed at Chinese facilities is not suitable for operation abroad, as it does not meet Western standards.
«Hosting capacity outside China was snapped up and in short supply even before regulator announcements. Moreover, expectations regarding hosting terms are greatly distorted», he noted.
Zhang noted that hosting abroad is more expensive and deployment takes longer. Outside China, there are also other deposit requirements.
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
According to Zhang, not all Chinese miners have been caught off guard — some had already expanded operations abroad. He said this process has accelerated after the imposition of a cryptocurrency mining ban by authorities in Inner Mongolia.
Zhang noted that Chinese miners are actively exporting equipment overseas. In his words, this amounts to 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 repack former miners. In the last two weeks, they have shipped out over 20,000 ASICs», he wrote.
Not only mining companies but also manufacturers of mining hardware plan to leave China. According to journalist Colin Wu, the giant Bitmain has temporarily halted sales of equipment and announced a “full overseas move.” Some senior employees are allegedly also leaving 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
As reported on June 22, the NYSE-listed mining company BIT Mining Limited also reported a successful delivery of the first batch of cryptocurrency mining equipment to Kazakhstan.
Follow ForkLog news on VK!