Canaan, a bitcoin mining company, extends its presence in Kazakhstan.

Because of China’s prohibition on cryptocurrency mining, Kazakhstan has swiftly filled the hole by providing cheap fuel and a favourable business climate.

Canaan Inc, a Bitcoin (BTC) mining gear company, is extending its presence in Kazakhstan after forming new strategic alliances with several crypto mining companies in the nation.

The Nasdaq-listed business stated on Tuesday that it has installed 10,300 AvalonMiner units in Kazakhstan by December 31, 2021, completing phase one of its deployment in the central Asian country. Canaan is collaborating with local businesses as part of its aim to expand its operations outside of China. The corporation, however, refused to name any of its local partners.

Canaan is situated in Hangzhou, China, but the business plans to expand beyond its borders following Beijing’s broad ban on cryptocurrency mining in 2021. During a July earnings call, Canaan’s CEO, Zhang Nangeng, spoke out against the mining ban, saying investors that crypto miners make better use of stranded power and contribute positively to jobs and the local economy.

With China putting an end to the cryptocurrency mining sector, neighbouring Kazakhstan has hurried to fill the hole, giving displaced workers cheap and plentiful coal. Kazakhstan had been home to the world’s fifth-largest mining pool by June 2021. Kazakhstan accounted for over a fifth of the world’s Bitcoin mining production the following month.

The prohibition on Bitcoin mining in China caused a dramatic decline in network hash rate, however this was swiftly restored as displaced miners established other bases of operations. The Bitcoin network’s hash rate achieved a new all-time high on Jan. 2 after a six-month recovery.

Canaan, on the other hand, saw phenomenal growth in 2021, with net revenues reaching post-IPO highs. According to unaudited financial statistics released in November, the company’s net revenues totalled $204.5 million in the third quarter, an increase of 708.2 percent over the same time the previous year.