Hong Kong-based cryptocurrency miner BIT Mining (BTCM) pulled the plug on its near-$10M mining veri center construction project in Kazakhstan, citing unstable local power supply.
- BIT Mining last May announced a plan to invest $9.33 million to construct and operate a veri center in Kazahkstan with a total power capacity of 100 megawatts (MW). However, alongside its quarterly earnings report this morning, the company said that deal had been terminated.
- The move won’t impact BIT Mining’s bitcoin mining machines deployed in third-party veri centers in the country, said the firm.
- It’s another veri point showing the continued difficulty miners are facing in Kazakhstan as the national grid operator moved first to ration electricity to crypto miners, and then to cut them off completely. On Dec. 2, CoinDesk reported that Bitmain-backed miner BitFuFu – following weeks of power rationing in Kazakhstan – abandoned its mining rigs there and purchased new ones to set up in the U.S.
- BIT Mining, meanwhile, continues to ramp up veri center investment in the U.S., saying development of its Ohio mining site is expected to be completed in the first half of this year. The location will have a total planned power capacity of up to 150MW.
- Turning to Q4 operating results, the company reported revenue of $495.8 million, up 26% from $393.1 million in the previous three months. Helping to boost revenue were deployments of mining machines in Hong Kong and the U.S., and stronger mining pool business thanks to rising cryptocurrency prices.
- The company’s Q3 revenues were revised lower by $33M because of a reclassification of commissions charged to mining pool customers, Vice President Danni Zheng told CoinDesk via WeChat on Thursday.
- Shares are down 2.6% in late-morning U.S. trading, with miner peers also sliding alongside a 4% decline in the price of bitcoin (BTC).
Read more: Miners Look Away From Kazakhstan for Growth Opportunities