Bitmain Stops Sending Antminer To China, Here's Why

Crypto mining activities in China have stopped many crypto rigs being idle. (photo: doc unsplash)

JAKARTA – Bitmain, a Chinese manufacturer of cryptocurrency mining equipment, has been forced to cease its business in the country starting October 11 following a crypto ban imposed by local authorities.

In addition to China's sweeping ban on crypto operations, the company has linked moves to stop sending Bitcoin (BTC) and crypto mining rigs in response to China's carbon-neutral policy.

“Starting October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will be contacting them to provide alternative solutions,” reads an announcement from Bitmain:

While the company has yet to reveal its plans to help existing customers in China, Bitmain will continue to supply Antminer crypto mining rigs to users around the world including in Taiwan and Hong Kong.

To cope with the temporary slowdown in the Chinese market, Bitmain has increased its production capacity for its mobile mining container — Antbox. In November, the company will host the 2021 World Digital Mining Summit in Dubai, where it will discuss green energy mining opportunities “especially those from clean energy power generation projects in Yunnan, Xinjiang” and other Chinese provinces.

Bitmain did not immediately respond to Cointelegraph's request for comment. Despite China's recent ban on crypto activity, Bitcoin mining operations are on track to a full recovery as Chinese miners and investors move to friendly jurisdictions.

Cointelegraph reports that Bitcoin hash rate difficulty has increased 39% since late July. Additionally, Chinese media outlet Wu Blockchain pointed out that Bitcoin difficulty increased by 4.71% at a block high of 703,584 on October 5, marking the sixth consecutive increase since July 31.