Bitmain, the cryptocurrency mining giant is reportedly planning to set up 200,000 units of mining equipment in China in order to gain benefit from low-cost hydroelectric power in the country, as stated by a source from China, who is familiar with the matter.
As per CoinDesk’s report published on March 21, Bitmain will install 200,000 units of their own mining machines in the country to reap benefits of the cheap hydroelectric power costs during the summer following the excessive rains in southwestern China. The said equipment is estimated to cost around $80 million to $100 million.
Reportedly the mining giant is already entered into negotiations has started making deals with local mining farms to host its equipment. Per the source, Bitmain would be deploying its new machines like AntMiner S11 and S15 along with some older models like the AntMiner S9i/j.
Bitmain’s decision come in the wake of its shutting down its development center in Israel and fired local employees last December, and in January it reduced its operations in the Netherlands. The head of the Israeli branch and Bitmain vice president of international sales and marketing, Gadi Glikberg ostensibly linked the closure to the recent crypto market collapse:
“The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
As for the Netherlands the operational closure, Bitmain stated that the move was part of its longer-term roadmap of cost-saving measures. WIth Bitcoin (BTC) currently circling $4,000, the decreased profitability have had been suffering Bitmain.