Mining operations in certain regions have already been shut down and prices for graphics cards in China have started to fall. The partnership between Optimum Mining Host and Black Rock Petroleum Company shows the large scale of mining operations that previously operated only in China, as well as the problems that companies will have to go through to get all equipment out of the Asian country.
Mining exodus points to Canada
With the Chinese government cracking down on cryptocurrency mining operations, many operational mining centers have already closed their doors and are looking to start their activity elsewhere. The two main reasons behind China’s decision to ban cryptocurrency mining are the carbon footprint in the first instance, but also that the People’s Bank of China wants to get away from the volatility of cryptocurrencies in the Asian market. In an official statement, the People’s Bank of China said the following:
“Virtual currency trading activities disrupt the normal economic and financial order, create the risk of illegal and criminal activities such as the illegal transfer of cross-border assets and money laundering, and seriously violate the security of people’s property.”
For its part, in a statement from Black Rock or Optimum Mining Host they describe how many mining platforms will be used and where they will be located. In total, one million mining rigs will be distributed to three new locations in Alberta, Canada:
“Caledonian Mainstream is an Alberta-based company that owns 14 natural gas wells; Caledonian will become a wholly owned subsidiary of Black Rock upon completion of the recently announced transaction, and Black Rock will use the site to house and operate up to 200,000 mining machines, with another 300,000 at another Alberta location and 500,000 more at a third. site to be identified shortly when negotiations are concluded. ‘
The statement does not specify how the cost of operating all these Bitcoin mining rigs in Canada will be divided, but it appears that the two companies will divide it equally. The statement, in fact, barely goes over the entire agreement so there are still a lot of questions hanging in the air.
A fun fact is that the Black Rock Petroleum Company website is wildly basic and only uses stock images. The founder, Zoltan Nagy, occupies both the position of President and CEO as well as CFO, Accountant, Treasurer, Secretary and Director, something that really sounds pretty shady.
It is certainly plausible to move a million mining systems to Canada from China, but whether or not it really happens is another question. We will just have to wait and see if these platforms are already operating in Canada in the 24 months they have set or what happens to them, but it is a fact that after China’s ban on mining, the companies that were profiting from they will have to move token. In addition, after this announcement we will have to see if the Canadian authorities make any statement in this regard.