Chinese miners are exploring the possibility of moving farms abroad

Chinese miners are exploring the possibility of moving farms abroad

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The future of the mining industry in China is very uncertain. An increasing number of Chinese miners are considering to go under the other jurisdiction where they can safely conduct their activities. Miners are looking towards Vietnam, Laos, Thailand, Russia and the United States.

Last week, rumors spread that the state power company in Sichuan province in China intends to deal with mining. Despite the fact that, according to the company, this document represents only the “internal note”, which states “about the irrational distribution of energy for the mining companies,” many of the local miners are exploring options of placing the equipment in other countries to protect themselves from further regulation by the state.

Chinese miner Akira Tsui, recently told the South China Morning Post that many of the miners: “has already visited Vietnam, Laos, Thailand, Russia and the United States to discuss energy prices with the local authorities and rent future sites”. Tsui argues that “business must go abroad, even if there is at least 1% probability that repression in China will reach mining”.

Tsui started to mine bitcoins in 2013 after selling his Internet company for 30 million yuan ($4.5 million). He initially invested about 5-6 million yuan (about $800 thousand) in mining hardware, and now he has increased the number of hardware to 100 000. Tsui believes that 90% of its equipment belongs to friends and clients for whom it holds my equipment.

According to him, for the big miners to provide a reliable source of energy is the main task. Each machine can generate about 100 yuan (about $15) a day, and financial losses incurred during the downtime of equipment can be significant. This encourages miners to seek alternative options.

“We are discussing opportunities with partners in Los Angeles, and we were also in Russia and Vietnam to select potential locations [placement of equipment],” says Tsui. “If regulators declare mining outside the law, it will take us about three months to resume operations abroad. Money for the purchase of land is a relatively small amount compared with the whole business.”

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