Cryptocurrency mining giant Bitmain is reportedly planning to set up 200,000 units of mining equipment in China to benefit from low-cost hydroelectric power in the country, crypto media outlet CoinDesk reported on March 21.
A source from China familiar with the matter reportedly told CoinDesk that Bitmain will install 200,000 units of their own mining machines to take advantage of cheap hydroelectric power costs during the summer following the excessive rains in southwestern China. The mining equipment is estimated at around $80 million to $100 million.
The crypto mining giant has reportedly entered into negotiations and started making deals with local mining farms to host its equipment. According to the source, Bitmain is looking to deploy its new machines like AntMiner S11 and S15 along with some older models like the AntMiner S9i/j.
The news comes in the wake of Bitmain’s decision to close its development center in Israel and fire local employees last December, and to reduce its operations in the Netherlands in January. Gadi Glikberg, head of the Israeli branch and Bitmain vice president of international sales and marketing, 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 closure of its operations in the Netherlands, Bitmain said that the move was part of its longer-term roadmap of cost-saving measures. Bitmail reportedly suffered as a result of decreased profitability of Bitcoin mining in recent months, with Bitcoin (BTC) currently circling $4,000.
Also in January, news broke that Bitmain had reportedly suspended its mining operations in Rockdale, in the United States state of Texas. Steve Young, a Milam County Judge, issued a statement reporting that all Bitmain employees but two engineers and the director of human relations had been laid off, and all operations had been suspended.