Canaan to Suspend Mining Operations in Kazakhstan

According to Kazakh laws and rules, those engaged in cryptocurrency mining must first obtain a special license. Canaan Creative has been applying for a license since early July, but is still pending. Canaan Creative announced the suspension of its mining operations in Kazakhstan, which is expected to remain suspended until the third quarter of 2023. The hash rate has dropped by 2 EH/s since July, equivalent to half of the company’s hashrate in Central Asia and North America. Meanwhile, in the U.S., Canaan Creative is embroiled in a contract dispute with hosting partners accused of violating joint mining agreements. Canaan Creative accused the partner of allegedly mishandling 13,000 Avalon Miners, demanded the repayment of a $1.25 million deposit, and sought compensation such as Bitcoin profits. In cases where mediation was ineffective, Canaan turned to arbitration to resolve the dispute.

With the arrival of the third quarter of 2023, adverse factors from Kazakhstan, coupled with contract disputes in the United States, will undoubtedly have an impact on Canaan's business. The company admitted that in the volatile cryptocurrency space, different legal environments and partners with unpredictable behavior can complicate the company's operations, but Canaan promised to readjust its strategy to pre-emptively address such operational obstacles. It is worth mentioning that Canaan Creative will hold its 10th anniversary celebration in Singapore on September 12 and release new products.