Kazakhstan builds new crypto mining facilities

NBTC, a wholly owned subsidiary of the Shanghai company The9, and LGHSTR Ltd., registered in Kazakhstan, signed a non-binding investment memorandum to establish a joint venture in Kazakhstan, the Chinese company said.

NBTC will own 51% of the company and exercise control over the board of directors of the new entity, the press release says. The joint venture will be primarily aimed at the construction of the cryptocurrency mining facilities of a 200 MW total capacity within two years, The9 reported.

The completed facilities of about 5 EH/s hashpower will be able to accommodate over 50,000 S19 Antminer devices, the company says. About 100 MW of capacity should be available by the end of this year, with the rest scheduled for the end of 2022.

The9 is currently working to globalize its business as part of a broader effort to establish itself as a diversified high-tech internet company. NBTC General Director Cai Zhifang notes that the first batch of its hash power was already installed in Kazakhstan in early August, noting that the equipment is operating seamlessly.

The9 emphasizes that it will continue to seek low-cost facilities with sustainable energy in various regions of the world. The company wants to accelerate the large-scale deployment of cryptocurrency mining equipment, both its own and its partners’ machines. To this end, the company intends to invest in new farms and cooperate with operators of existing facilities.

Earlier in August, its subsidiary NBTC signed a non-binding joint venture agreement with Kazdigital Ltd., another entity from Kazakhstan.