Chinese mining companies and mining pools have completed their overseas migration operations. One of the hallmarks is that Bitcoin’s entire network’s hash rate has begun to rebound rapidly, and China’s mining pools remain at the forefront of the hash rate list.
Since May this year, China has launched a severe crackdown on Bitcoin mining, and many provinces in China have requested that virtual currency mining be stopped.
Due to historical reasons, China has always been the center of Bitcoin’s hash rate. However, sudden regulation has forced many mining farms and mining pools to shut down domestic miners, causing Bitcoin’s hash rate to plummet. According to data, in May of this year, Bitcoin’s total network hash rate dropped from the highest 176.06EH/S to 99.38EH/S, a drop of more than 43.55%. As of September, it has risen to 125.19EH/S.
According to industry analysts, under the circumstances of China’s severe crackdown on Bitcoin mining, companies with clear strategic development directions for global mining pools and years of deep cultivating in the blockchain industry have survived their leading position and have been further consolidated.
The recovery of the mining pool hash rate is strong.
On May 21, the 51st meeting of the Financial Stability and Development Committee of the State Council called for cracking down on Bitcoin mining and trading. Subsequently, Bitcoin mining has been completely banned.
Since June, all Bitcoin miners in Sichuan Province have been powered off collectively, and the Bitcoin hash rate has plummeted.
Take the world’s largest hash rate Antpool as an example. Its hash rate once dropped by 65.76%. On May 8, the hash rate of Antpool reached a historic high of 31,752.87 PH/Sand dropped to 10871.61 PH/S on June 29.
However, in less than two months, the hash rate of the Antpool has recovered to the level before the crash. At the end of August, the hash rate of the Antpool was 23329.87PH/S, which was the same as on May 22.
The recovery of Antpool’s hash rate is related to Bitmain’s active “going to sea” strategy. This includes taxation, legal affairs, customs clearance, etc., in North America and Kazakhstan. At the same time, Bitmain will build stable and high-quality large-load mining farms in North America to provide convenient conditions for China’s miners and mining farm owners to go to the sea.
On June 24, Bitmain stopped selling miners worldwide and announced an emergency “going out to sea” announcement by the mining farms. In the announcement, Bitmain stated that all business colleagues of Bitmain faced difficulties. Under the epidemic situation, they went to sea urgently to the United States, Canada, Russia, and other countries to find high-quality power resources for the industry and customers.
On July 25, Bitmain announced that it would cooperate with Enegix to establish its largest encryption mining farm in Kazakhstan. It is estimated that more than 50,000 Antminer S19 Pro will be used.
The new generation Antminer S19 Pro has a hash rate of 110±3% TH/s, leading the industry with its performance, using a new generation of modern architecture chips, and energy efficiency as low as 23 J/TH. The chip model is BM1398, and each Hash board contains 114 chips. A total of 342 chips provide 110T of hash rate. The whole miner adopts the design of an integrated power supply, dual fan exhaust series in parallel at the front and rear, and dual 10A power ports.
Chinese mining pools continue to monopolize
Two months later, domestic regulatory policies have been implemented, and domestic mines have been closed.
According to senior miners, the hash rate of the top mining pools has rebounded rapidly. So on the one hand, the Chinese miners themselves quickly found a new site to rebuild the mining business in a short period, and then continue to access the original mining pool.
On the other hand, some large mining companies signed legally binding investment terms with overseas companies early on. As a result, the two parties jointly invested in constructing mining farms overseas, and quickly put the miners into operation after being deployed abroad.
This has been proved by Bit Mining.
At present, there are two main reasons for the stable recovery of platform hash rate: one is that BTC.com has been deploying global markets and expanding overseas business a long time ago, forming a global brand power; second, the ability to develop international markets has been steadily improved At present, most of the new customers of BTC.com come from markets other than China.
Of course, mining pools with overseas backgrounds have also developed rapidly recently. Foundry USA, SlushPool, SBI Crypto, and other overseas mining pools have entered the top ten.
The ability to expand international markets becomes the key.
The mining pool is different from a single mining farm. It is an open and fully automatic mining platform. Miners worldwide connect their miners to the mining pool, contribute their hash rate to mine together, and then earn profits. Collect commissions.
According to reports, at present, the hash rate of BTC.com accounts for about 11.3% of the total Bitcoin hash rate, ranking fifth in the global Bitcoin mining pool, about 12770PH/S.
From April 15 to June 30, 2021, BTC.com’s total mining pool business revenue was recognized as US$422.8 million, accounting for 95.0% of Bit Mining’s total revenue in the second quarter.
The beautiful revenue data of BTC.com mining pool suffices to show that the mining pool business is more stable compared to mining farms.
However, as significant mines are now moving overseas, mining pools must also adapt to the new situation, actively expand the international market, attract overseas customers to access their mining pools, and even help customers find cheap power resources overseas and settle overseas. Under China’s severe crackdown on Bitcoin mining, Bitcoin mining pools may usher in a round of reshuffle. Nevertheless, companies with their own clear and clear globalization strategy development direction and years of experience in the blockchain industry can survive. Not only that, their leading position will be further consolidated. Only globalization can achieve true distribution, minimize costs, and serve more users in this environment.