US-listed bitcoin miner The9 eyes Russia relocation after China crackdown – The Block Crypto

US-listed bitcoin miner The9 eyes Russia relocation after China crackdown – The Block Crypto

Shanghai-based online gaming and bitcoin mining firm The9 City has signed an agreement with Russia-based colocation provider BitRiver for a capacity of 15 megawatts.

The9 said the initial hosting period with BitRiver will be two years, after which it can be extended for another year. It’s part of The9’s ongoing effort to seek electricity and facilities in different regions to deploy its bitcoin mining equipment either through proprietary capacity or colocation providers.

Originally an online gaming firm listed on Nasdaq, The9 revealed its pivot into mining in January and began operating in February. As of the end of March, it owned about 126 BTC, per a regulatory filing in the U.S. 

The bitcoin mining company is facing regulatory headwinds due to provincial governments in China handing down orders to cut off energy supplies for bitcoin mining facilities in June.

The 15 megawatts reserved so far at BitRiver appears to be far from enough, however, for housing all of the equipment that The9 purchased earlier this year, based on the tech specification of these purchases.

The9’s investment in China

Based on its 2020 annual report released in March, The9 issued several rounds of new equity in Q1 to raise money for purchasing an older generation of bitcoin mining equipment when there was a supply crunch for the newest generation of machines.

Between January and March, The9 bought over 35,000 old bitcoin ASIC miners with a combined hashing power of 745 petahashes per second.

It deployed the majority of them in Chinese provinces including Sichuan, Xinjiang,
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