China’s Xiangtai food Co. buys 686 spot Bitcoin miners despite mining ban
Xiangtai Food Co., Ltd., a Nasdaq-listed Chinese food company has bought 686 spot Bitcoin miners that are worth US$6 million via its United States subsidiary called SonicHash LLC. While the mining operations would be continued in New York, the fact that the Chinese government has issued an all-out ban against crypto companies could brew some trouble for the firm back home.
By the end of January 2022, the freshly bought miners should be delivered to the Company’s mining facility location in Carthage, NY, in two to three weeks. As a result, once all miners are operational, the Company’s entire mining activities are estimated to consist of 1,428 Bitcoin miners, producing roughly 132.2 PH/s. Based on Bitcoin’s average price of US$49,628/BTC for the past month, the Company expects to make roughly US$11 million in revenue and US$7.7 million in cash contribution margin for the first year.
Recently, a District Court in Beijing rejected a plea of the plaintiff seeking compensation from a Bitcoin mining company over losses incurred on his investment. The court deemed the case invalid as mining is a prohibited business in China.
China accelerates its CBDC roll-out plans
While China’s no-nonsense approach towards cryptocurrencies is nothing new as they have banned cryptocurrency over a dozen times in the past decade. However, the Beijing government is now looking to accelerate its digital yuan official public launch event. Many belive China is eyeing the Winter Olympic launch for e-CNY as the whole world’s attention would be on them.
China began its CBDC research and development as early as 2014 when most of the countries were not even aware of Bitcoin and the whole crypto market. The development of the digital yuan was completed in late 2019 and since then the government has been testing its use in various sectors. Digital yuan’s first use case came in the form of traveling allowances for government employees and was later expanded to include various other sectors and provinces. Yesterday, WeChat, the biggest social messaging and payment app with over a billion users announced it would integrate e-CNY payments on its network.
- Crypto Market Correction Intensifies As S&P 500, Dollar Index Enter Dangerous Territory
- BitGo To Follow Gemini’s Footsteps With US IPO After 4x Revenue Surge
- Michael Saylor Predicts Bitcoin Will Outperform S&P 500 Forever
- Crypto Market Eyes Upside as FTX Set to Repay $1.6B to Customers
- Elon Musk’s X Vows Crackdown on Bribery Network Behind Crypto Scam Accounts
- Chainlink Price Prediction: Whales Scoop 2M LINK as Analysts Eye 184% Breakout Rally
- Shiba Inu (SHIB) Price Prediction: Massive SHIB Burn and 80-Week Cycle Mirroring Past Rallies: Will History Repeat?
- Cardano Price Stays Above Ichimoku Cloud as Grayscale ADA ETF Approval Nears
- HBAR Price Prediction as SEC Approves Generic ETF Framework – Analyst Targets $1.80
- Toshi Coin Gains 57% in One Day: What’s Driving the Sudden Upside?
- Shiba Inu Price Set to Soar as Exchange Reserves Dive Amid SHIB ETF Chatter
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
