Russia Gets Majority of Chinese Mining Machines Amid Miner Exodus, Report Reveals – Mining Bitcoin News

China's crackdown on its crypto mining sector, launched earlier this year, led to a massive exodus of mining companies to friendlier jurisdictions. Miners have moved a huge amount of coin minting hardware to new bases around the world, with Russia reportedly taking the largest share among several attractive destinations, including the US

Russia, Kazakhstan, USA accept most Chinese mining rigs

The influx of Chinese miners into several countries, either providing some regulatory clarity or offering cheap energy, has been accompanied by a large transfer of mining equipment. Data compiled by the Financial Times shows that 14 of the world's largest crypto mining companies have evacuated more than 2 million mining machines from the People's Republic after the government in Beijing issued a nationwide order Crackdown about the industry in May.

North America and Central Asia have emerged as mining hotspots, but Russia has taken the top spot. The report shows that at least 205,000 out of a total of over 430,000 pieces of mining equipment were transported to the Russian Federation. Following China's decision to go after Bitcoin miners, Russian firm Bitriver received 200,000 machines from Chinese miners, while Moscow-based Bit Cluster hosted another 5,000.

Neighboring Kazakhstan has also developed into an important mining destination. The country, which maintains a limited electricity tariff, is now home to numerous Data Center operated by Chinese mining companies. According to the FT figures, most of the 87,849 Chinese mining rigs relocated came from Bitfufu, which shipped 80,000 machines to crypto farms in Kazakhstan, and BIT Mining, which provided 7,849 devices by August.

Both former Soviet countries face challenges related to their growing crypto industries. Russia has yet to regulate the sector, with growing opinion among officials that mining should be recognized reported as a business activity and taxed accordingly. Kazakhstan is suffering from a power shortage, largely due to crypto miners, as authorities mull the rollout Registration for miners and a higher electricity tariff.

The released figures also show that eight of the 10 largest crypto farms in North America have increased the number of mining devices they host since the Chinese ban was enforced. Right behind the Central Asian country is the USA, which has accepted 87,200 mining rigs from China. Canada ranks fourth with 35,400, followed by two South American nations - Paraguay with 15,500 and Venezuela with 7,000.

Liquidations in China have depressed the price of mining equipment such as the popular Antminer S19, notes the Financial Times. The value of the model fell by almost 42% from May to July, the newspaper cited detailed market data from mining company Luxor.

Chinese mining hardware manufacturer Bitmain, which makes and offers the S19 device, announced in June that it was suspending sales to "ease the industry's transition" and reduce market pressure. “The focus of the market has shifted from a lack of equipment to a lack of space for its placement,” commented a Bitriver representative from Russia.

What do you think of the report's findings on the migration of miners and mining equipment from China? Share your thoughts on this topic in the comments below.

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