Cryptocurrency mining operations that use renewable energy should be spared China’s recent crackdown on miners, according to Zhang Nangeng, CEO of Chinese-owned mining rig manufacturer Canaan Inc. During a recent earnings call, Zhang said that although mining operations that rely on fossil fuels hampered China’s attempts to reach carbon neutrality, those running on renewables use surplus green energy and contribute to local business and the economy.
Fast Facts:
- “For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste,” Zhang said, adding: “Bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.”
- Canaan is accelerating its international expansion as policy uncertainty pushes its customers to look overseas. The recent Chinese crackdown on crypto and falling BTC prices have pushed the price of mining rigs down 20%-30% from a month ago.
- Energy regulators in hydropower-rich Sichuan Province held a seminar on June 2 to assess how the recent crackdown will impact the crypto mining industry there. Although there has so far been no news of the outcome, the seminar has given hope to the region’s mining industry for some leniency from the ban.
