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China province cuts power from 26 bitcoin mining farms

Chinese authorities in Sichuan province forced energy distributors in the region to cut the supply for 26 bitcoin mining farms on Thursday (18), according to information from The Block.

China province cuts power from 26 bitcoin mining farms

China province cuts power from 26 bitcoin mining farms (Image: BitRiver)

Mining companies had to turn off their machines to undergo an inspection that should last until Sunday (20). In the order issued jointly by the Sichuan Department of Energy and the Development and Reform Commission, it is not clear why these facilities are being investigated.

The 26 mining companies listed in the order are registered with the government and are located in industrial zones authorized for the activity. Another relevant point is that these farms are powered by clean energy from hydroelectric plants. When Xinjiang province issued a similar ban last week, it used fossil energy as a justification, which does not apply in the case of Sichuan.

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The province concentrates many mining farms because it has large hydroelectric plants. When the rainy season starts, the region receives a large influx of miners looking for cheaper energy. For that reason, Sichuan accounts for 10 percent of all bitcoin ecosystem’s hashing power, according to Cambridge University data.

Today’s ban, therefore, signals that officials from different territories are following to the letter the crackdown advocated by the Chinese government last month, regardless of the type of energy the miners use, or whether they are registered or not. At this rate, four provinces have banned mining in the Asian country in just over a week.

In addition to disrupting the activities of facilities that comply with the law, Sichuan authorities said they would also crack down on the operations of informal miners who obtain electricity privately.

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