A Chinese Bitcoin mining company, Optimum Mining Host, intends to relocate a total of 1 million systems of its mining capacity to Canada. “The move is planned to take place gradually over the next 24 months and will be facilitated by Black Rock Petroleum Company.
With China taking strict measures against cryptocurrency mining operations, many farms have already closed and are looking to operate elsewhere. The two main reasons China has banned cryptocurrency mining operations are that the country is committed to achieving carbon neutrality and the People’s Bank of China wants to move away from volatile cryptocurrencies.
“Trading in virtual currencies disrupts the normal economic and financial order, poses the risk of illegal and criminal activities such as illegal cross-border asset transfers and money laundering, and seriously compromises the security of people’s property,” the People’s Bank of China said in a statement.
Cryptocurrency mining has already stopped in some parts of China, and the prices of graphics cards in the country have started to fall. And now Bitcoin mining companies have been forced to look for other places to continue their operations.
Optimum Mining Host and Black Rock Petroleum Company said in a statement that 1 million mining units are planned to be placed at three sites in Alberta, Canada. In doing so, Caledonian Mainstream, the owner and operator of 14 natural gas-rich producing wells, will become a wholly-owned subsidiary of Black Rock Petroleum Company. Upon completion of this deal.
Black Rock will use one Caledonian site to house and operate up to 200,000 miners, a second site to house 300,000 miners and a third site (to be determined shortly after negotiations are completed) for 500,000 miners.
The statement does not specify how the costs of making the mining farms operational will be shared. It is likely that the two companies will share the costs. It is also noted that the Black Rock Petroleum Company website is very simple, using only stock images. Founder Zoltan Nagy holds the positions of “president and chief controlling officer” as well as “financial and accounting officer, treasurer, secretary, director”. In the “About Us” section, both company executives appear without portraits, using stock images instead.