China’s Bitcoin mining Giant Bitmain is reported to be eyeing new bitcoin mining sites in Canada. According to the company representative, this is as a result of the increased crackdown on bitcoin mining and trading operations in China.
China has previously been credited with being the biggest source of cryptocurrency with the government raising fears of excessive power consumptions by the mining operations. Bitcoin mining involves the use of massive computers to solve complex mathematical puzzles. These then help validate transactions in the cryptocurrency ledger otherwise known as the blockchain.
The province of Quebec is set to be the major beneficiary of this shift due to its massive energy resources. According to Hydro Quebec, the province has a power surplus of more than 100 terawatt hours over 10 years. 1 terawatt hours is enough to power 60,000 homes for a period of 1 year.
Quebec has already attracted 3 of the 5 largest blockchain players. This is after a campaign done late last year to attract investment in data centers and cryptocurrency mines. The province offers some of the cheapest electricity rates in North America with an industrial rate of $0.0394/Kwh for cryptocurrency miners and $0.0248/Kwh for data centers.
Although China has not issued any direct threat or official statement on Bitcoin and other cryptocurrencies, Chinese miners report an increased control over expansion and the frequent and random shut down of mines.
“We, and from what I understand many of our peers, are already making plans to go overseas,” said Li Wei, chief executive of ZQMiner.
Although it won’t disclose the location, Bitmain claims to already be doing mining operations in Canada with plans to expand the mining sites and build new ones.
Other companies are also set to benefit from increased crypto-mining activity in the country as the crypto-miners seek to share or lease unused company space from traditional companies such as textile, paper, and pulp mills.