Bitmain, China’s largest maker of cryptocurrency mining machines, announced that it has suspended the sales of its devices on the spot market to help ease selling pressure, due to Beijing’s ban on bitcoin mining.
The Bitmain technologies offer products, including chips, servers, and cloud solutions, for blockchain and artificial intelligence (AI) applications.
Bitmain has stated that it and its clients are searching for “quality” power sources in countries such as the United States, Canada, Australia, Russia, Kazakhstan, and Indonesia.
Cryptocurrency mining is big business in China, accounting for more than half of global bitcoin production. But in late May, China’s State Council, or cabinet, promised to crack down on bitcoin trade and mining in order to avoid financial hazards. Earlier this year, three financial industry associations advised their members, not to provide any crypto-related services such as account openings, registration, trading, clearing, settlement, or insurance.
The latest tightening has already made it far more difficult for individuals in China to trade in cryptocurrencies, even through channels that have avoided previous restrictions. The authorities urged local governments to start combing for cryptocurrency mining projects and shut them down.
China’s biggest cryptocurrency mining hubs, including Inner Mongolia, Xinjiang, Yunnan, and Sichuan, have all released detailed steps to combat the industry in response to Beijing’s request.
Following the ban, many Chinese miners are selling machines and exiting the business, or shipping machines overseas. “Overseas mining sites are not built overnight, and selling pressure is huge in the secondary market,” Bitmain said in a statement.
Bitmain said overseas markets where it and Chinese miners are seeking cheap electricity include Belarus, Sweden, Norway, Angola, and Congo.