What happened: Chinese cryptocurrency mining giant Bitmain is reportedly planning to deploy up to 200,000 units of mining equipment in China, according to mining farm operators who are familiar with the plan. Bitmain has reportedly been in talks and started making deals with mining farms in China’s southwestern provinces to host the mining equipment. The company is reportedly looking to benefit from the low-cost hydroelectric power in the region during the summer. The deployment is conservatively estimated to cost between $80 million and $100 million.
Why it’s important: The decision to scale up its mining capability comes a few months after the mining giant shuttered a number of its overseas offices, including those in Israel and Amsterdam, amid the crypto market slump last year. The bear market at one point led to hundreds of thousands of cryptocurrency miners shutting down. Bitmain’s move could indicate a shift in the market, showing that mining companies are preparing to invest again after last year’s contraction in capacity.