Canaan Gives Update On Bitcoin Operation
Date
8/18/2023 3:11:23 PM
(MENAFN- Baystreet.ca)
Canaan Gives Update on bitcoin Operation Canaan Inc. (NASDAQ: CAN) noted its share price descend Friday, as the company, a leading high-performance computing solutions provider, announced that the challenges set forth below may adversely impact the Company's bitcoin generation and revenue from its mining activities, primarily due to reduced uptime, beginning in the third quarter of 2023.
To ensure legal compliance, the Company decided to temporarily shut down approximately 2.0 Exahash/s of its mining computing power in Kazakhstan since July 2023, subsequently to the Rules for Licensing of Digital Mining Activities became effective in Kazakhstan.
The Rules were released by The Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan to implement Law No. 193-VII on Digital Assets in the Republic of Kazakhstan, which came into effect in April and set a legal framework for governing the mining of cryptocurrency within the country. Under the Law and Rules, persons engaged in the mining of cryptocurrencies must first obtain a specialized license.
The Company has been monitoring potential policy changes and their impact in Kazakhstan as early as 2021. As mentioned in the Company's third quarter of 2021 earnings call, the Company was hopeful that Kazakhstan's then-forthcoming regulations on cryptocurrency mining would bring about a period of sustainable cryptocurrency development in the country. At the same time, to better manage its geographic exposure, the Company has been building out its global mining operations outside Kazakhstan.
CAN shares slid 24 cents, or 10.1%, to $2.11.
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