Mining rig manufacturer Canaan to mine bitcoin in Kazakhstan

Canaan, one of the largest mining hardware providers worldwide, announced it is setting up mining operations in Kazakhstan as it engages on its first attempt to mine bitcoin.

Nangeng Zhang, Canaan Chairman and Chief Executive Officer, said “we believe that our self-operated bitcoin mining business will help us improve our financial performance as well as expand our business scope and customer base.”

The CEO also added that as they try to integrate more industry resources into their operations, their mining machine inventory will be revitalized and they will be shielded from bitcoin volatility while also ensuring inventory sufficiency during market upturns.

New diversification strategy

The decision of Canaan to try its luck on bitcoin mining is part of its business diversification strategy for 2021 which was announced earlier this year.

With this new venture, the Chinese ASIC maker is hoping to gain more returns that will offset losses during times when demands for its mining rig decline.

The company has already started expanding its business as early as the first days of this month, establishing its first overseas after-sales service center also located in Kazakhstan. The center provides Canaan customers with services like machine testing, warranty, maintenance, and technical consultation and support.

Affected by Chinese government’s crackdown

Canaan, just like other crypto-mining-related companies, is likely compelled now to expand its business models in an attempt to penetrate overseas markets because of the recent actions of the Chinese government with its negative stance toward the industry.

The mining rig producer even pleaded its case amid the intensified crackdown operations by authorities, but its pleas seem to have landed on deaf ears, prompting it to look for alternative means to gain profit.

Getting involved in mining the largest cryptocurrency by market capitalization seems to be a good start for the mining rig manufacturer.

Image courtesy of Cointelegraph News/YouTube

Source: https://bitcoinerx.com/bitcoin/mining-rig-manufacturer-canaan-to-mine-bitcoin-in-kazakhstan/