Under heavy pressure: China’s mining pools drop in arithmetic power by more than 20%, mining machine migration is imminent

Xinjiang, Qinghai and other provinces and cities have gradually followed up with mining regulatory policies.

Under heavy pressure: China's mining pools drop in arithmetic power by more than 20%, mining machine migration is imminent

Following the release of the Inner Mongolia Development and Reform Commission’s “Eight Measures to Resolutely Combat and Punish Virtual Currency “Mining” (Draft for Comments)” on May 25, Xinjiang, Qinghai and other provinces and cities have gradually followed up with mining regulatory policies.

On June 3, Baotou City Energy Double Control Emergency Command Office recently issued a “notice on the acceptance of virtual currency “mining” enterprises, personal issues letters and visits reported” said, fully accept the virtual currency “mining” enterprises, personal issues letters and visits reported. The scope of the report includes virtual currency “mining” enterprises (including other hidden forms of “mining” enterprises and subjects), individuals; virtual currency disguised as data centers to enjoy preferential policies in terms of tax, land, electricity prices, etc. The “mining” enterprises and individuals, etc.

On June 9, Xinjiang Changji Hui Autonomous Prefecture Development and Reform Commission issued a notice on the immediate shutdown and rectification of virtual currency mining enterprises, requiring the Xinjiang Jundong Development Zone Management Committee to immediately order enterprises engaged in virtual currency mining to stop production and rectify by 14:00 on June 9, and report the relevant shutdown and rectification to the Development and Reform Commission.

On the same day, the Qinghai Provincial Department of Industry and Information Technology issued a notice on the complete shutdown of virtual currency “mining” projects, requiring all regions to carry out cleanup and rectification of the virtual currency “mining” behavior: First, the regions are strictly prohibited from establishing and approving all kinds of virtual currency “mining” projects. The “mining” project, the existing various types of virtual currency “mining” project completely shut down. Second, resolutely investigate and correct the main body of the project in the name of big data, supercomputing centers and other projects but engaged in virtual currency “mining”. The company will not be able to provide premises and power support for virtual currency “mining”. Third, the later will be the cleanup and consolidation of the situation to carry out checks and spot checks, please do a good job of preparing the relevant information.

Sichuan, since June 2 held a research forum on the situation of “virtual currency”, has not yet issued specific rules and documents.

Some bitcoin mining pools for Chinese miners have seen their hash rates plummet over the past 24 hours due to regulatory policies.

According to BTC.com data, major Chinese bitcoin mining pools such as Ant Mining Pool, Coinprint, F2Pool, and BTC.com have all seen their hash rates drop by more than 20% in the last 24 hours, down 29.61%, 20.21%, 20.07%, and 21.84% respectively. Among the top five mining pools, only ViaBTC mining pool hash rate showed a small increase of 1.95%.

Exchange mining pools such as the Coinan mining pool, the Firecoin mining pool, OKEx mining pool hash rate also decreased by about 20%.

As of press time, Bitcoin’s network-wide arithmetic power is 143.82 EH/s, and for a short period of time, it has dropped significantly since June 8.

A New Wave of Offshore

Under strong regulation, the China-led cryptocurrency mining industry is moving overseas, while a global distribution trend is emerging.

On June 1, Zhang Nangan, chairman of Jia Nan Technology, said that as of May 31, 2021, Jia Nan had outstanding total orders for more than 149,000 mining machines, and had signed purchase orders for more than 10,000 mining machines with both Mawson, a US-listed company, and Genesis, an international mining giant, and more than 1,000 orders There are 29 customers with orders of more than 1,000 units. In addition, Jia Nan said it will start its own mining in Kazakhstan in early June.

In addition, according to the financial report released by Karnan Technology for the first quarter of 2021, the company’s revenue from overseas markets accounted for 78.4% of total revenue in the first quarter of 2021, compared to 4.9% in the same period of 2020.

On the other side, many overseas-listed companies have disclosed bitcoin miner purchase data since the end of 2020. As of February 19, 2021, 17 listed companies disclosed having purchased bitcoin miners, of which 16 disclosed the number of bitcoin miner units (335,000 in total) and 10 disclosed the arithmetic power of these miners (nearly 21 EH/s), which exceeds 16% of the full bitcoin network arithmetic power (136.18 EH/s) in the same period, according to GTSM data.

And in the face of the regulation at hand, Edward Evenson from the SlushPool mining pool recently said in a media interview that he has recently been contacted by 300-400MW of bitcoin miners seeking to place machines in certain areas of North America and the EU, with others preparing to ship machines to Kazakhstan. Machines from Xinjiang (which is primarily coal-powered) are being moved to nearby areas in Central Asia. New machines sent from Bitmain and MicroBT are shipped to North America. Machines going to North America typically seek traditional data centers at cheap “all-inclusive” hosting rates, as is the practice in China. China’s computing power isn’t declining, it’s moving. Bitcoin computing power is becoming more widely distributed around the world.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/under-heavy-pressure-chinas-mining-pools-drop-in-arithmetic-power-by-more-than-20-mining-machine-migration-is-imminent/
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