Canaan Expects Kazakh Regulatory Hurdle, Dispute In US To Impact Bitcoin Mining, Revenue
Canaan Inc. (CAN), a Chinese high-performance computing solutions provider, said on Friday that a continued suspension of its bitcoin mining operations in Kazakhstan and an ongoing dispute in the U.S. will impact its bitcoin generation and revenue.
The company now expects that a continued suspension of its mining tasks in Kazakhstan will enter into the third quarter, resulting in an expected reduction in bitcoin generation.
Since July, Canaan has temporarily shut around 2.0 Exahash/s of its mining computing power in the Central Asian country to ensure legal compliance after the Rules for Licensing of Digital Mining Activities became effective in Kazakhstan.
The computing power shutdown comprises about half of the its total installed computing power in Central Asia and North America, which totaled 4.0 Exahash/s at the end of the first quarter.
Now, according to the Law, the persons engaged in the mining of cryptocurrencies must first obtain a specialized license. The miner noted that it has been continuing its efforts to get necessary licenses to resume its operations in the country.
Canaan U.S. Inc., an operating subsidiary of Canaan said that now it intends to file an arbitration demand and proceed to reach a suitable settlement pertaining to a case in which its partner breached the parties’ Joint Mining Agreement at a U.S.-based mining farm.
Canaan has alleged that its partner, among others, has failed to install 13,000 of Canaan US’s cryptocurrency mining machines, to refund Canaan US’s $1.25 million deposit, and to pay Canaan US a substantial amount of the Bitcoin profits.
Canaan’s move to file an arbitration demand follows a mediation earlier this month, where both parties failed to reach any settlement.
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