Following the nationwide crackdown on miners, Bitcoin mining operations in China are gearing up to relocate three tons of crypto mining equipment to the US. The new reports emerged just a few weeks after authorities in several provinces ordered power companies to discontinue supply to mining firms.
Bitcoin Mining Operations Are Transitioning From China to The US
In light of China’s hardening stance on crypto mining, Bitcoin moguls in the country have started to look elsewhere for lucrative opportunities.
The world’s most populous nation banned crypto-related services in May and decided to monitor mining activities more stringently. Critics in China argue that mining operations consume inordinate energy and jeopardize the country’s climate goals in the process.
To date, Xinjiang, Qinghai, and Sichuan have openly prohibited power supply to mining companies. Not surprisingly, Bitcoin’s hash rate fell sharply in the aftermath of these decisions. The ban in Sichuan, in particular, took a toll on daily hash rates.
Some experts believe that China’s anti-mining climate could provide a breakthrough for the US. For years, crypto miners relied on China’s cheap electric supply to carry out their operations. In fact, in 2018, miners in China accounted for the world’s 74% production of Bitcoin. Now, these ventures are eyeing Texas, South Dakota, or even Canada, triggering a mass transition.
The recent relocation of a mining farm from Guangzhou to Maryland is the most visible instance of this mass transition. According to Eunice Yoon, a CNBC representative, the move will see nearly three tons of mining machinery being transported to the United States.
#China logistics firm in Guangzhou confirms to @CNBC it’s airlifting 3,000kg (6,600lbs) #bitcoin mining machines to Maryland, USA. Fenghua International advertises products delivered to door, tax on both ends cleared. Price per kilo: as low as $9.37! #cryptocurrencies pic.twitter.com/8yUjZjhpkk
— Eunice Yoon (@onlyyoontv) June 21, 2021
Miami Opens Its Doors to Ousted Crypto Miners
Meanwhile, Miami is welcoming ousted miners to establish operations in the city. Its current mayor, Francis Suarez, a vocal advocate for cryptocurrencies, has highlighted his support for digital assets on repeated occasions.
Suarez has promised several incentives for miners, which include tax concessions, infrastructure incentives, and limited regulations to galvanize investments in the sector. Furthermore, he has guaranteed lower electricity bills for miners, with more than sufficient supply from Miami’s abundant nuclear power.
As far as the BTC hash rate is concerned, the current gap between the US and China is significantly wide. However, this gap is expected to begin closing as more mining companies transition to the US.