NBTC, a subsidiary of the Shanghai-based The9 has signed a joint venture agreement with the Kazakhstan-registered LGHSTR Ltd, to build a crypto mining site in Kazakhstan. The Chinese based company said they are partnering to build a mining facility of 100 megawatt capacity.
The9 will use the mining facility to deploy its mining machines and possibly those of other third parties. After the initial 100MW goal is reached, the deal is to see the project scale to 200MW within two years. The construction will run within four stages. The first 25 MW would have been completed within a few days after the release of the statement. The next 75MW will be completed between the third and fourth quarter of 2021 and the first quarter of 2022. The remaining 100MW will be set for 2022; 25MW added every quarter.
Once complete, the facility will host up to 50,000 S19 Antminer devices and run around 5EH/s of hash power. The9 will initially transport 1000 mining machines to the site for testing.
The Chinese company will own 51% of the joint venture and also control the board of directors. The Kazakhstan company on the other hand will be responsible for the management and operation of the joint venture. Both companies are to contribute resources to the project. While The9 will be providing cash or mining machines, LGHSTR will be investing in the construction and infrastructure of the mining site.
The joint venture works best for The9, given it is currently working on globalising its operations. It is looking to attain the status of a diversified high-tech internet company, and this can only happen once it has mastered all the various aspects of its operations. It has already restored some of its hash power in Kazakhstan.
Chinese miners moving to crypto-friendly locations
The Chinese crypto crackdown is one of the most high profile crypto activities in 2021. After being the world’s leading crypto producer for some, the Chinese government banned all forms of crypto activities during mid-year. Ever since the largest crypto miners in China have been moving to crypto friendlier countries like Kazakhstan.
Other than expanding its global reach, moving to Kazakhstan is a logical option for The9 with Kazakhstan’s low-cost electricity and sustainable mining facilities. By partnering with local existing companies, it makes it easy to set up their facilities and to also reach the local market.
Other than The9, another Chinese company, NBTC signed a non-binding joint venture agreement with yet another Kazakhstan mining firm, Kazdigital Ltd. The deal was to build a 100MW mining facility for The9 mining machines and those of the other various crypto mining companies.
As China looks to tighten its stand against crypto activities, several more crypto mining companies will keep on moving to friendlier locations. Currently, Kazakhstan, Australia, Canada and the US are some of the most preferred locations. Other Chinese companies are also moving to Central Asia. Meanwhile, Kazakhstan has since surged to become the world’s third-largest crypto producer.