The9, a Chinese game company that entered the mining business earlier this year, announced on Tuesday (13) that it will send its machines to Russia to escape restrictions imposed by the Chinese government on activity in the country.
The Nasdaq-listed company (NCTY) said in a statement that it has signed a hosting contract with BitRiver, a bitcoin mining company based in Russia’s capital Moscow.
BitRiver owns large mining farms powered by excess hydropower in the region. To take advantage of the area’s sustainable and low-cost electricity, the company leases the entire structure to mining companies in other countries.
The data center that will receive The9 machines has a supply capacity of 100 MW and can host more than 33,000 pieces of equipment. Initially, the Chinese company will use 15 MW of available electrical capacity and may occupy the site for two years, according to the contract signed between the parties.
The lease of the new farm in Russia, however, is not expected to be sufficient to allocate all of the machines currently in possession of The9.
According to The Block, the company carried out several rounds of investment earlier this year to buy bitcoin mining equipment. As there was a crisis in the supply of new generation machines, The9 acquired more than 35,000 old ASICs.
Until then, these machines were spread in different regions of China like Gansu, Sichuan, Xinjiang, Qinghai and Inner Mongolia. With the exception of Gansu, all other provinces have banned, to varying degrees, mining in their territory.
The time for The9 to find a new location for its equipment gets even tighter as the date approaches when the company will receive an additional 24,000 Antminer S19j Pro, ordered from Bitmain earlier this year.
in search of a new home
Russia has become an alternative for miners looking for a new place to work. The main reason is the cheap energy provided by hydroelectric plants in the area, but the cold climate is also an attraction to guarantee the power of machines that require constant cooling.
So far, however, countries like Kazakhstan and the United States are among the top recipients of miners who leave China.
One of the Chinese companies that has already started operations in Kazakhstan is BIT Mining. The miner was forced to shut down its machines after Sichuan province ordered a power cut for the activity.
On Tuesday, the company raised $50 million in a private equity offering to finance the construction of new mining farms abroad.