China has taken a series of measurements following the outbreak of Coronavirus. The situation is affecting businesses around the country, including a government-controlled quarantine. Authorities recently forced a mining farm in a remote region to shut down its operation. According to the farm’s CEO, Jiang Zhuoer’s post, mining farms are shutting down across the country.
Zhuoer said that his mining company would not be allowed to resume work at the moment. However, he noted that none of his personnel have ever stopped working.
And none of the staff had left the zone; since the government imposed the quarantine.
Affordability of Electricity in China’s Remote Provinces
Noteworthy, the affordability of electricity in Xinjiang, Sichuan, Yunnan and Inner Mongolia; have contributed to China’s position as a Bitcoin mining hub. Additionally, the country’s leading mining chip manufacturers are Bitmain and Canaan Creative. Bitmain is a global leader producing at least 66% of the world’s hardware for cryptocurrency mining.
Unfortunately, the virus outbreak has led to the closure of Canaan, Bitmain and MicroBT. The firms published notices on their sites confirming delays and hitches on their after-sale services. Moreover, they added the delays would take place until the 10th of February. Meanwhile, the historic bitcoin halving is in within the next 100 days.
Analysts anticipate it to be a serious price trigger, however, the time span of the halving event has already overlapped with the coronavirus outbreak. Mining operators said they were afraid both factors would significantly impact the maintenance of mining machines and the deployment of new machines.
Iran Mining Operations
Last month, the Ministry of Industries, Mining, and Trade in Iran issued at least 1,000 cryptocurrency licenses for domestic mining operations. A report by the Iran Banking and Economic System Reference Media (IBENA) indicated the number of licenses the government was issuing. Meanwhile, several mining farms have already launched their operations.