Bit Digital takes advantage of the Chinese mining exodus

The company shipped 14,500 miners to the United States during the second quarter of 2021, making it the company’s largest quarterly shipment to date, Bullett said. minors. Such equipment is believed to be pouring into the spot market in extraordinary volumes as the old China-based operators seek to pull out, ”he added.

Many mining companies are moving their operations from China to North America, after Beijing banned bitcoin mining last month, according to companies like Bit Digital, a large-scale bitcoin mining company.

In May, Beijing called for a crackdown on China’s crypto mining industry, which was home to more than 65% of the world’s mining capacity. According to reports, more than 90% of China’s bitcoin mining capacity is expected to close, just weeks after the ban was announced in China’s Qinghai Province.

While bitcoin has been banned in China for some time now, a number of internet technology and commerce groups issued a statement in May reaffirming their support for the ban and stating that the ban included relatively new areas in the ban. industry like DeFi, Blockworks reported. .

Yet the “great mining migration” out of China has become a force for decentralization and a driving force to move a significant portion of mining companies to North America in search of new homes for mining facilities.

While there are a number of reports of miners from China fleeing to the United States to reestablish their hash presence, there is no indication that they settled in the United States – only shipped there l ‘equipment, Blockworks reported, because there hasn’t been a significant increase in the overall hash rate yet.

At the Sequire Blockchain 2021 conference, Bit Digital CEO Bryan Bullett said the company has accelerated its migration strategy to North America, which has been part of its ongoing efforts since October 2020. Bit Digital owns approximately 32,000 machines and shipped 14,500 miners to the United States during the second quarter of 2021, making it the company’s largest quarterly shipment to date, he said.

Bit Digital has an edge over other mining companies, with its strategy of forming logistics channels and hosting relationships, which has enabled it to speed up the company’s process of moving its mining operations out of China. , Bullett said.

But other operating mining companies have not had the same luck in their own great migration out of the Asian country. Some mining companies “were not so lucky and had no choice but to quit the company and attempt to sell equipment en masse, according to industry sources,” Bullett said. .

“This has led to a historic disruption of the market price for miners. Such equipment is believed to be pouring into the spot market in extraordinary volumes as the old China-based operators seek to pull out, ”he added.

But as the market begins to face new ground on North American soil, Bit Digital sees this moment as a growth opportunity to acquire miners on a large scale and potentially rapidly grow its asset base.

The company bought 3,515 miners on the spot market during the second quarter and plans to purchase more by the end of the third quarter, it said in a statement.

The company is the only listed mining company in the United States with both a United States-based core management team, operating and hosting relationships, and close relationships with major former Chinese operators, Bullett said. . This gives them an advantage and access to the US and Chinese markets.

“We can act as a bridge between the troubled Chinese market and North America, and in so doing, dramatically increase our fleet size and hash rate, subject of course to market conditions and the availability of capital.” , did he declare.

Bit Digital has signed two new hosting agreements in North America, for a total of 60 megawatts of additional electrical capacity to complete the migration of its entire fleet. “We plan to complete the migration in the third quarter of 2021 and intend to provide continuous progress updates to the market,” added Bullett.

The company also has a hosting partnership in Alberta, Canada, with a company that is developing mine sites on natural gas wells to reuse waste gas for mining “and provide otherwise wasted energy to the grid. bitcoin by hosting our miners, ”he said.

“We are a global organization,” Bullet said. “Although our business origins are in China, we have moved our leadership, operations and miners to North America, in order to provide greater transparency and access to a stable regulatory environment here. “

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