Government in China’s Sichuan Province orders Power Cut to 26 Bitcoin (BTC) Mining Farms, To Bring Down Global BTC Network’s Hashrate by 10%
China’s Sichuan Development and Reform Commission and Energy Bureau has issued a notice asking to shut down 26 “suspected key projects” of virtual cryptocurrency mining by June 20, 2021. The local media 8BTC broke this news. The Sichuan government has asked the public electricity producers and distributors to cut off the hydropower supply to these 26 Bitcoin mining farms immediately.
Reports say that the Sichuan government is first going after the larger mining farms and will then go after the smaller ones that privately source electricity from hydroelectric plants that still escape state control.
Mathieu Vincent, CEO of Summit Mining, has said that more and more BTC miners are relocating to the Sichuan and Yunnan provinces because of the availability of hydroelectricity power. This massive relocation of mining farms to these two provinces is mainly due to the fact that the coal mines are getting banned in Inner Mongolia.
With the new notice of crackdown on crypto mining farms, the Sichuan province wants to slow down the migration of these farms. Reports say that the ongoing crackdown on Bitcoin farms by the government in Sichuan Province will decrease the global hash rate of Bitcoin by 10%.