Posted 2 years ago | by Ben Armstrong
Latin America's Bitcoin Miners Being Hunted by China Group
According to recent reports published by Cointelegraph, Rocelo Lopes, CEO of Stratum, CoinPY, is negotiating to sell Brazilian-owned, Paraguay-registered mining farm CoinPY, which is a leading crypto company in Latin America to China investors.
Rocelo Lopes is known as one of the leading names in the Bitcoin and cryptocurrency market in Latin America. The Bitcoin mining faclity in Paraguay will be sold in its entirety to a Chinese group that already has similar operations in China.
The group reportedly sought out Lopes since Chinese miners concerned about tightening regulations in their native China. The launch of any Chinese central bank digital currency (CBDC) could cause a new wave of difficulty in the cryptocurrency industry for Chinese miners, who are already operating on shaky ground.
Chinese Looking for Options Abroad
Other Chinese miners are also looking for alternative locations to set up operations. Some miners are moving operations from the world's leading Bitcoin mining region Sichua to Inner Mongolia, Xinjiang and Yunnan to take advantage of the energy generated by thermal power companies during the dry season.
Also, Chinese mining companies are looking to older and less-profitable equipment like Antiminer S9, E10, and M3 from regions like Latin American, and countries like Kazakhstan and Uzbekistan.
According to sources speaking to Cointelegraph under anonymity, all equipment at the Brazil-registered, Paraguay-based mining farm will have to be removed. Lopes would remove all the machines he has in his space until the end of February.
Ready to Go
CoinPY hosts third-party machines, customers have been notified of the destination where they give the equipment, which is mostly the Antminer S9. The negotiations also mention letting the Chinese consult with CoinPY for up to 8 years, which involves aspects of mining but also governmental and regulatory relationships.
In a recent television program, Lopes pointed out that mining has been becoming more professional and that the halving would permanently kill the possibility of any mining on a large scale.
According to another report, China closed a Bitcoin mining farm due to the Coronavirus outbreak. As the virus becomes more problematic for the global economy, it is far to speculate that other Chinese companies will look for options in other nations, or geographic regions.
Bitcoin mining has been a big industry for China, but that appears to be changing. One wonders if the Chinese governmental actions to restrict the growth of a vibrant industry will have long-term consequences in a nation that is at an economic standstill.