Bobos & Wojaks

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Bitcoin Mining Has Reached An All-time High

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Ripple CEO Brad Garlinghouse famously predicted in 2019 that Bitcoin (BTC) will not achieve widespread adoption because “Bitcoin is truly controlled by China.” In 2021, Bitcoin is at all-time highs and has gained legal tender status, while China has enacted a sweeping crackdown on cryptocurrency, allowing the US to overtake it as the world’s largest BTC mining hub. Not only has there been a mass exodus of crypto-related operations from China to the United States, including livestreaming dogecoin (DOGE) mining platform Hello Pal International Inc. (CSE:HP) (OTCQB:HLLPF), BTC miners SOS Limited (NYSE:SOS), crypto mining machine manufacturers Canaan Inc. (NASDAQ:CAN) and Ebang International Holdings Inc. (NASDAQ:EBON), but retail giant Alibaba Group Holding Limited.

While its headquarters are currently in Vancouver, Canada, Hello Pal International Inc. (CSE:HP) (OTC:HLLPF) just announced that it is shifting its crypto mining rigs to North America after aggressively obtaining new locations for their new Bitmain Antminer L7 Machines.

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“We expect that the relocation of our mining operations to North America will set us up for long term stability in our crypto-mining operations,”

KL Wong, Hello Pal’s Founder and Chairman, stated.

“In turn, this will provide us a solid base to execute our plans of integrating crypto into our social networking core business.”

Hello Pal conducted a thorough review of the best global mining locations with its partner Shanghai Yitang Data and chose to relocate the majority of its rigs to New York State.

All of the locations use clean renewable energy (hydro-powered). Furthermore, when Bitmain’s new mining rigs arrive in November and/or December of this year, they will be sent directly to these North American locations.

Hello Pal is also continuing to sell its existing Antminer L3+ mining rigs in China, with the funds going toward purchasing brand new Antminer L7 units for use in North America.

The news comes just a week after Hello Pal reported record quarterly revenue, the majority of which came from cryptocurrency mining.

“We are very pleased to see the progress we have made as a Company, and believe that the results are evident in the financial figures,” said Wong.

“We are particularly excited in the continued internationalization of our business, as reflected in our expansion of live streaming services outside China and the integration of cryptocurrency into our platform through our newly launched crypto-mining operations.”

Similarly, SOS Limited (NYSE:SOS) recently announced the completion of its North American Super-Computing and Hosting Center in Wisconsin, a state rich in natural resources and renewable energy. Six mobile smart data center units have now arrived in Wisconsin.

“The supercomputing and hosting center in Wisconsin is an important part of SOS’s efforts to create its own blockchain technology based ecosystem,”

Yandai Wang, CEO and Chairman of SOS, stated.

“We look forward to launching our Super-Computing and Hosting service business in Wisconsin in the first quarter of 2022.”

The overall power at the Wisconsin center is planned to be 50MW, with renewable and grid power being used. When fully operational, the Wisconsin plant is expected to have a total BTC hash power of 1,000 PH. The center’s Phase I is expected to consume up to 20MW. This is accomplished through the use of 17 mobile smart data center units.

Despite the Chinese prohibition, Canaan Inc. (NASDAQ:CAN) has secured orders for thousands of machines at a time, including the recent sale of 6,500 Bitcoin mining machines to Hive Blockchain. HIVE’s newest transaction follows two previous purchases of 4,000 and 6,400 Canaan’s Avalon Miners in August and January of 2021, respectively.

“The additional purchase order from HIVE further strengthens our working relationship,”

Canaan’s Chairman and Chief Executive Officer, Nangeng Zhang, stated.

“The consecutive deals are not only a testament to the quality and performance of our mining machines, but also demonstrate our effective client relationship-building efforts. We will continue to position ourselves as an important partner for HIVE as they accelerate their business growth.”

Ebang International Holdings Inc. (NASDAQ:EBON) issued an official statement in May headlined “Crackdown on Bitcoin mining has no direct or immediate impact on the company.”

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In it, Ebang emphasized that the crackdown had no direct or immediate impact on the company, emphasizing for its shareholders the distinctions between its business and the impact of China’s government policy.

“When we first announced our mining business, we only considered overseas mining farms, therefore the recent crackdown on bitcoin mining within China has no direct or immediate impact on the company,” said Ebang in the statement.

“The company has banned Chinese citizens from participating in trading and banned users or potential users from Chinese IP addresses from accessing our exchange platform since we positioned our cryptocurrency trading mechanism. Accordingly, the Chinese government’s crackdown on trading has no impact on the company and its prospects.”

It’s worth noting that since that May statement, Ebang hasn’t issued a single news release on their English-language website.

Alibaba Group Holding Limited (NYSE:BABA), a multibillion-dollar retail juggernaut, took the ban very seriously, prohibiting all international sales of cryptocurrency mining in September.

Alibaba.com expressly prohibits the selling of “virtual currency-mining machines,” which include hardware and software used to get cryptocurrencies like bitcoin, as well as mining lessons. It then removed two product categories from the site: “blockchain miners” and “blockchain miner accessories.”

However, in an effort to avoid any potential clash with Beijing, Alibaba recently rebranded its non-fungible token (NFT) products as “digital collectibles,” especially after Chinese state-run media recently warned of a potentially “huge bubble” in the NFT market.

A search for “NFT” on Alibaba’s digital flea market Xianyu yields no results. Meanwhile, a Google search for “digital collectibles” yielded roughly a dozen things for sale.