Canaan transfers its mining operations to Kazakhstan 

The latest mining company to migrate its operations to Kazakhstan is Canaan, a crypto mining hardware manufacturer, which was formerly based in Hangzhou, China.

With now everything in place in Kazakhstan, the mining operator is now using its state-of-the-art Avalon Miner machines in its operations.

Canaan has responded quickly to China’s intensifying crypto crackdowns by immediately transferring its operations to a more crypto-friendly place.

And being one of the world’s biggest mining machine manufacturers, there is so much at stake with the company, and its migration would protect its revenues, supply chain, and inventory management.

Canaan said that even with the challenges on all sides, it is optimistic that it can expand the business and integrate industry resources into its operations.

It also added that the management is looking forward to improving the company’s mining inventory and protect itself from the volatility of Bitcoin.

Shifting into mining

Manufacturing crypto mining machines have been proven to be a profitable business, now that cryptocurrencies’ popularity is rapidly rising, but just like any businesses, it also has downsides, too.

The sales of mining machines are closely related to the value of the cryptocurrency they mine, and cryptocurrencies’ fluctuations directly impact manufacturers’ revenue streams. Also, the changes in demands, which happen quite fast, are affecting manufacturers’ production operations.

That is why shifting into the mining business protects Canaan from these costly risks and allows it to quickly adapt to any changes in the market.

More opportunities in mining

Canaan’s shift to mining makes a lot of business sense because it can easily shift into crypto mining with its in-house machines which itself has manufactured.

And by taking advantage of low electricity and not being “bothered” by regulatory crackdowns, Canaan’s revenue can certainly improve.

 

Image courtesy of Cointelegraph News/YouTube

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