Shanghai-based online gaming and bitcoin mining firm The9 City announced an agreement with Russia-based colocation provider BitRiver for a capacity of 15 megawatts. The bitcoin mining firm said the initial hosting period with BitRiver would 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.
The9 only recently turned to bitcoin mining.
Originally an online gaming firm listed on Nasdaq, The9 only recently turned to bitcoin mining in January and began operating in February. As of the end of March, the firm owned about 126 BTC, per a regulatory filing in the U.S. The9 is facing regulatory headwinds due to provincial governments in China handing down orders to cut off energy supplies for bitcoin mining facilities in June. China’s crackdown on crypto mining and the crypto industry has caused firms to seek solace outside the Asian country.
The9 is one of several U.S.-listed Chinese bitcoin mining firms.
The9 is one of several U.S.-listed Chinese bitcoin mining firms that have been affected by China’s crackdown on the industry. Earlier, NYSE-listed BIT Mining, previously known as 500.com, announced its relocation plan to Kazahkstan last month as its mining facilities in Sichuan were ordered to shut down by the authorities. Bitcoin mining colocation providers outside the Asian country have already announced plans to scale up power capacities anticipating Chinese miners’ exodus following the government crackdown. The environmental impact of bitcoin mining has been a major concern among regulators and the crypto community, which mining firms are actively addressing by continuously turning to clean energy.