The9, a bitcoin miner, is forming a joint venture to build a 100MW facility in Kazakhstan.
The9 City, a Shanghai-based bitcoin mining company, is building a 100-megawatt mining facility in Kazakhstan as part of its international expansion following China’s crackdown. On Wednesday, the Nasdaq-listed bitcoin miner announced that its wholly-owned subsidiary NBTC Ltd had signed investment terms with Kazakhstan mining partner KazDigital. The objective is to form a joint venture to construct a 100 MW crypto mining facility in the region by Q1 2022.
According to The9, the development will take place in four phases, with each phase adding 25 MW of capacity quarter by quarter. The first phase is scheduled to conclude on August 1, and The9 has stated that it will ship 1,000 units of its bitcoin mining machines to test the waters. The local partner will manage the on-site operation.
The9 is one of the few publicly listed bitcoin mining companies that has been materially impacted by China’s recent crackdown orders. Its decision to build infrastructure from the ground up comes amid a global shortage of bitcoin mining hosting capacity as a result of the market’s oversupply of bitcoin ASIC miners that have gone offline.
The9 signed a contract with Russia-based colocation firm BitRiver last month to reserve 15 MW of capacity. However, it appears as though that was insufficient and it requires additional space. According to its annual report filed in the United States, The9 deployed the majority of its 35,000 old generation bitcoin miners in Sichuan, Xinjiang, Qinghai, Inner Mongolia, and Gansu before China cut off power to local bitcoin mining farms. Additionally, The9 anticipates receiving its first batch of 24,000 pre-ordered AntMiner S19j hardware in November.
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