A major Chinese maker of bitcoin mining machines argued against an indiscriminate crackdown on cryptocurrency mining in China, saying the business helps make better use of electricity and contributes to employment and the local economy.
Zhang Nangeng, CEO of Nasdaq-listed Canaan Inc, told an earnings conference call that although cryptomining activities using fossil-fuel power hampers Beijing’s green efforts, those powered by clean energy should be spared from the crackdown.
“For-profit miners prefer regions with low electricity prices that indicate oversupply, and likely energy waste,” Zhang said.
In addition, “bitcoin miners also help create jobs in impoverished regions and contribute to fiscal coffers.”
Zhang’s comments come after China’s State Council, last month, ordered a crackdown on energy intensive bitcoin mining and trading, and Inner Mongolia, a major mining centre, proposed measures to root out the practice.
Energy regulators in southwest Sichuan – a province rich in hydropower – met local power generators on Wednesday to probe cryptomining in China’s second-biggest bitcoin production hub.
Bitcoin and other cryptocurrencies are created or “mined” by high-powered computers competing to solve complex mathematical puzzles in an energy-intensive process that often relies on fossil fuels, particularly coal.
Canaan makes machines, or rigs, to mine bitcoins.
Zhang said policy uncertainty is prodding domestic miners to move overseas, and causing some clients to hold off placing new orders for mining equipment.
Beijing’s crackdown is also prompting some miners to “undersell” mining equipment, helping knock-down prices, Zhang said.
Spot prices of bitcoin mining machines are down 20%-30% from roughly a month ago, hurt by falling bitcoin prices.
To reduce business uncertainty, Canaan is accelerating overseas expansion, securing long-term contracts, and setting up its own offshore bitcoin mining business.
Canaan, which on Tuesday reported a nearly 500% surge in first-quarter sales to 402.8 million yuan ($63.12 million), said overseas markets now contributes to 78.4% of its total revenues. That compares with just 4.9% in the first quarter of 2020.
Orders from overseas clients, including Canada‘s Hive Blockchain Technologies, and U.S. crypto player Core Scientific, also account for more than 70% of total orders.
Canaan is also expanding into bitcoin mining itself, having set up an office in Singapore, and is preparing to launch a cryptomining business in Kazakhstan, in central Asia.
“Just as it took a long time for bitcoin to be recognized by the market, there will also be a (long) process for bitcoin, and cryptomining, to be recognized by regulators” in China, Zhang said.
($1 = 6.3820 Chinese yuan renminbi)
(Reporting by Samuel Shen and Alun John; Editing by Shri Navaratnam)
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
