Bitmain Eyes Canada For Bitcoin Mining Expansion As China Plots Crackdown

Bitmain proposed expansion into Canada is part of an effort that seeks to address growing concerns that authorities in China are planning to regulate cryptocurrency mining.  In the recent past, it has emerged that Beijing is piling pressure on local authorities to clamp down on the amount of power used for cryptocurrency mining operations.

Concerned by the potential impact of the crackdown, the likes of Bitmain have had to look elsewhere as they look to maintain the capacity of their mining operations. While authorities are yet to issue their official stance on cryptocurrency mining operations, it is becoming clear they won’t approve any expansion plans.

“We, and from what I understand many of our peers, are already making plans to go overseas,” said Li Wei, chief executive of ZQMiner, a Wuhan-based company that sells bitcoin mining equipment and has mines in three Chinese provinces.

Bitmain has already held talks with power authorities in Quebec as it looks to set house in the region.  The firm needs assurances from the authorities, on whether it will be able to install its specialized computer, known to consume lots of power when it comes to mining operations.

Canada Hydropower Excesses

Quebec has emerged as an attractive location for cryptocurrencies mining operations given its excessive cheap hydropower.  Reports indicate the province has excess energy of up to 100 Terawatt hours that could be used to support mining for many years. The region’s colder environment is also conducive for ensuring longer lives for ASIC machines used for mining operations.

 Hydro Quebec has already received inquiries from about 30 large cryptocurrency miners, all looking to launch mining operations in the province. The power company is amongst ones that offers lowest electricity rate in the region with an industrial rate of $0.0248 per kilowatt hour.  

Miner’s big challenge in Quebec is finding existing facilities that have the necessary infrastructure needed to handle specialized computers for cryptocurrency mining.  A new facility will essentially take up to one year to be fully operational. As it stands, large companies could begin operations in the province later this year and early next year.

Manitoba is another province that cryptocurrencies miners are closely eyeing. Manitoba Hydro just like Quebec Hydro has also received inquiries from more than 10 firms looking to launch mining operations in the province. The province just like Quebec, boasts of cheap power and reduced cooling requirements.