On the evening of the 25th, the Inner Mongolia Development and Reform Commission announced the “Eight Measures of the Inner Mongolia Autonomous Region Development and Reform Commission on Resolutely Combating and Punishing Virtual Currency “Mining” (Draft for Solicitation of Comments), and solicited opinions from the public.
The “Draft for Comments” regulates eight aspects, which can be said to be the most stringent restriction in the history of “virtual currency mining”, involving big data centers, communications companies, even Internet cafes, individuals, and civil servants. The punishment measures are also Including cancellation of preferential policies, revocation of licenses, suspension of business for rectification, inclusion in the blacklist of untrustworthy, transfer to judicial organs, transfer to disciplinary inspection and supervision organs, etc.
A week ago, on May 18, the Inner Mongolia Development and Reform Commission issued an announcement to set up a virtual currency “mining” enterprise reporting platform to fully accept complaints and reports about virtual currency “mining” enterprises. The Inner Mongolia Development and Reform Commission stated to the reporter of the “Blockchain Daily” that it will maintain a high pressure on the supervision of virtual currency mining.
According to data from the Cambridge Alternative Finance Center, Chinese miners account for more than 65% of the Bitcoin network computing power, of which Xinjiang, Sichuan, and Inner Mongolia account for 35.76%, 9.66%, and 8.06% of the total network computing power respectively, ranking among the top three in the country.
The 51st meeting of the Financial Stability and Development Committee of the State Council last week clearly stated that it is necessary to crack down on Bitcoin mining and trading. It is foreseeable that other provinces and cities in my country will follow Inner Mongolia and introduce more stringent measures to combat virtual currency mining, and domestic virtual currency mining will gradually withdraw from the stage of history.
Facing the sudden and strong supervision, where will those listed companies involved in virtual currency mining or mining machine business go? According to incomplete statistics from publicly available information, a reporter from “Blockchain Daily” found that there are currently 13 A-share listed companies, 7 Hong Kong-listed companies, and 9 Chinese concept stocks involved in the virtual currency mining business. The specific list is as follows.
13 A-share listed companies
1. Xinyuan Technology (300472.SZ): On March 15, 2021, the company and Jiangxi Shixing Technology Co., Ltd. signed a sales contract for the “Distributed Storage Center Project”. Xinyuan Technology is responsible for Shixing Technology’s distributed storage The central project plans the research and development, supply, installation, commissioning, software configuration and data center maintenance of the computing power machine and storage equipment, that is, the construction and maintenance of the Filecoin mine. The total amount of the project reached 580 million yuan, accounting for 119.37% of the company’s audited operating income in 2019.
2. Contact Interaction (002280.SZ): It was announced on May 24, 2021 that the company invested US$14,307,200 in Aoide Capital Limited’s projects in April 2019. The investment direction of the project is: mining machines, virtual currency trading and investment in ICO companies. In 2020, the confirmed fair value loss was US$5.08 million, equivalent to RMB 35,039,800.
3. Fortis Information (000836.SZ): The company holds 3.41% of Shanghai Baohu Investment Management Center (Limited Partnership), while the latter holds 4.67% of Canaan Technology. Canaan Technology is currently the world’s second largest mining machine manufacturer.
4. ST Hanye (600226.SH): The company invested 200 million yuan to hold 99.50% of the shares of Shanghai Yongtang Equity Investment Center (Limited Partnership). Shanghai Yongtang indirectly invested in Hangzhou Jianan Zhizhi Information Technology Co., Ltd. through Baohu Fund, and the company’s final holding ratio of Jianan Technology was less than 1%.
5. Deep Technology (000021.SZ): announced in January 2018 that the company is one of the well-known domestic manufacturers of bitcoin mining machine products, with an output of about 150,000 units. The company began to introduce this business in November 2017, and it is still in the introduction period so far, which has not had a significant impact on the company’s operating performance.
6. Zhongqingbao (300052.SZ): announced in January 2018 that its controlling shareholder Baode Technology is a Hong Kong listed company, and its main business is the development, production and sales of high-performance computer service systems. Baode Technology launched the first-generation digital currency mining machine PM108 in November 2017, and launched the second-generation graphics card mining machine PM208 in January 2018. At present, the orders for the two mining machines have exceeded 1,000, and they are mainly sold to Guangdong, Fujian, Jiangsu, Shanghai, Hebei and other places. Proton Internet, a wholly-owned subsidiary of the company, plans to combine the remaining bandwidth and computing power with Baode Technology’s mining machines to form a shared cloud pool, and engage in digital currency mining in the form of self-use or lease. The shared cloud pool business will be launched in the near future. .
7. ST Chenxin (002447.SZ): A wholly-owned subsidiary, Haoxin Internet (Beijing) Network Technology Co., Ltd., is a blockchain e-sports acceleration basic service developed by introducing blockchain technology. The device allows users to contribute idle network bandwidth and computing power through the terminal. As of January 2018, Haoxin Jingdou cloud equipment has sold 200,000 units through direct sales and agency sales, and there have been more than 500,000 reserved users.
8. Akcome Technology (002610.SZ): In 2017, its subsidiary Xinjiang Akcome Huicheng Information Technology Co., Ltd. actively carried out the sales and operation and maintenance business of blockchain cloud computing power equipment (profitable that year), and shipped it in Xinjiang, Qinghai and other places. Wei managed more than 10,000 Bitcoin mining machines, and later sold 100% of Xinjiang Huicheng’s equity at a transfer price of 60 million yuan and a profit of about 41.63 million yuan.
9. ST Zhongying (002464.SZ): Announced in August 2018 that its subsidiary Cailiang Technology will begin its business deployment in the blockchain field in the second half of 2017, and plans to rely on China’s rapid development in this field and the company’s With its own technical and industry advantages, it vigorously expands the overseas super-computing cloud service (mining machine service) market, becoming a global cloud computing server comprehensive service provider, and forming a new profit growth point for the company’s business.
10. Zhuoyi Technology (002369.SZ): announced in January 2018 that the company has been actively deploying blockchain business since 2015, relying on the company’s long-term accumulation of electronic product ODMs, and cooperating with Xunlei in ODM CDN “Making Money” ”, the third-generation Blockchain-based “Playoff Cloud” now shipped has been mass-produced. At the beginning of 2017, the company began to develop a multi-GPU high-performance parallel computing system, which is mainly used in AI, blockchain hashing (commonly known as mining) and other occasions that require high-performance computing, and it has completed trial production and can be mass-produced.
11. Great Wall of China (000066.SZ): The semi-annual report was released in August 2017, facing the overall decline in industry demand, especially the unfavorable factors of the sharp decline in the demand for traditional PC power supplies. The company further accelerated the pace of product structure adjustment, seized the hotspots of the Bitcoin network economy and overseas market demand, and achieved substantial growth in the mining machine power supply business and overseas market business, effectively driving the development of the overall power supply business.
12. China Railway Emergency Response (603300.SH): On December 4, 2019, the company received a supervisory work letter from the Shanghai Stock Exchange. The supervisory content is as follows: 1. Please verify and explain to the chairman Hu Danfeng: the company, the actual controller and its affiliates Does the party use Huatie Hengan’s Bitcoin “mining machine” for mining? If so, please indicate the number and value of the Bitcoin “mining machine” mining, the account opening of the Bitcoin account and the actual owner, and whether Hu Danfeng There are situations that damage the interests of listed companies, such as occupational occupation. Ask a lawyer to check and comment. 2. The company is requested to fully verify the rental and use of Huatie Hengan’s Bitcoin “mining machine”. If there is the above-mentioned use of Bitcoin “mining machine” for mining, please indicate the attribution of the relevant income and the main body of costs and expenses, as well as the previous period Whether the financial report makes accounting confirmation and presentation disclosure on the relevant income, costs and expenses. The annual audit accountant is invited to check and express opinions.
13. ST Three Five (300051.SZ): In November 2013, the company announced that the company is mainly considering building a comprehensive platform for Bitcoin, and selling related value-added services as an agent, such as expanding Bitcoin-related advertising business and researching and developing Bitcoin mining machines. , Bitcoin trading platform, Bitcoin payment intermediary and other businesses.
9 Chinese listed companies
1. Canaan Technology (can): It is a bitcoin mining machine manufacturer established in 2013. Its main business is bitcoin mining machine and sales. According to the 2020 financial report, revenue from mining machines and other products accounted for 95.5%. Canaan Technology’s mining business has been in preparation for a long time and will start operations in the second quarter of 2021, and will increase the number of self-operated mining in the second half of the year.
2. Ebon International (ebon): In December 2016, it launched its first application-specific integrated circuit (“ASIC”) excavator, called Ebit E9+ASIC, which is specifically designed to mine certain cryptocurrencies. On February 18, 2021, the announcement announced the completion of the additional issuance of securities, the establishment and operation of a cryptocurrency mining farm and the start of the Bitcoin mining business.
3. The Ninth City (NCTY): On February 8, 2021, it was announced that the company has signed six legally binding memorandums of understanding (MOU) with six mining machine owners and issued additional Class A common shares Buy bitcoin mining machines. This batch of equipment will include Bitcoin mining machines of different brands such as WhatsMiner, AntMiner and AvalonMiner, with a total of 10,489 units with a total computing power of approximately 251PH/S. The mining machines have been deployed in Xinjiang, Qinghai, Inner Mongolia and other places. On March 19, 2021, its wholly-owned subsidiary NBTC Limited signed a Bitcoin mining machine purchase agreement with Bitmain. According to the agreement, the Ninth City will purchase 24,000 Antminer S19j Bitcoin mining machines, which are scheduled to be delivered from November 2021. After the delivery is completed, Ninth City expects that the total computing power of its Bitcoin mining machines will reach 2160 PH/s.
4. Bit Digital, formerly known as Dianniu Finance (BTBT): On January 19, 2021, it announced that its Bitcoin mining business is developing well. The company actually owns 40,865 mining machines. Bitcoin mining business can be mined by third parties. HuobiPool and Antmining Pool have been verified by the auditors on site. In addition, the announcement disclosed that Bit Digital had earned 1331.2 Bitcoins in total in 2020.
5. China Global Shipping (SINO): On February 16, 2021, it announced that it had signed a binding letter of intent (LOI) to acquire a 51% stake in Inner Mongolia Jiulian Intelligent Big Data Park Service Co., Ltd. This transaction is yet to be completed Due diligence review. According to the official press release, Nine-Chain Intelligence has a 150,000 KW Bitcoin mining computing center and a 50,000 KW Ethereum mining computing center, accounting for approximately 2.8% of the world’s Bitcoin computing power and 8.25% of Ethereum’s computing power, respectively. force. On March 3, the company announced that it had signed a purchase agreement with HebeiYanghuai Technology Co., Ltd. to purchase 2,783 digital currency operation servers, with a total computing capacity of 50440t/s, and a transaction amount of 30 million yuan (approximately US$4.6 million) .
6. Bit Mining, formerly WBAI: On January 11, 2021, WBAI announced that the company expects to issue approximately US$14.4 million in Class A common stock as consideration to acquire Bitcoin owned by the seller Mining machine. To purchase bitcoin mining machines owned by the seller, including models such as S17, T17, M20 and S9. On February 26, it was announced that 500lottery.com purchased 1923 bitcoin mining machines and 2,000 Ethereum mining machines.
7. SOS Limited (SOS), formerly known as the P2P platform Xinerfu: On January 21, 2021, it was announced that the company has signed a purchase agreement to purchase 14,238 BTC mining machines. BTC Hash Power (Bitcoin computing power) is about 527P; and 1408 ETH mining machines, HashPower (Ethere currency computing power) is about 1056G.
8. Code Chain New World (CCNC): An announcement was issued on February 23, 202 that the company has signed an asset purchase agreement with Sichuan Rizhan Cloud Computing Company to purchase 10,000 Innosilicon T2T at a price of 40 million yuan (approximately US$6.2 million) Bitcoin mining machine.
9. Ming Yuntang (MYT.US): May 10, 2021 announced that it will accept cryptocurrency payments from this week, including Bitcoin, Ethereum, and Dogecoin. The scope includes all in China from Hunan 39 Shops operated by Pucha Industry Co., Ltd. and all restaurants operated by Guokui Management in the United States. Ming Yuntang decided to start blockchain technology research and cryptocurrency mining business. Moreover, the management expects a new subsidiary in China to conduct research and development of blockchain-based software and applications, and to promote the commercialization of such applications and cryptocurrency mining.
7 Hong Kong-listed companies
1. Huobi Technology (01611.HK): announced on April 22, 2021 that the company’s wholly-owned subsidiary, Huobi Asset Management (Hong Kong) Co., Ltd. Private equity funds for mining-related projects launched their asset management services. Huobi Asset Management can only provide services to professional investors.
2. Xiong’an Technology (01647.HK): announced on January 9, 2021 that Yao Yongjie, Chairman of the Board of Xiong’an Technology, signed a legally effective strategic cooperation agreement with Lion Group Holdings. Yao Yongjie will provide the company with technical advice and consultation in the blockchain field as the chief technical consultant. The two parties have cooperated to establish a fund of no more than 800 million US dollars, which will be used to jointly promote the development of blockchain technology and the industry environment, actively promote business innovation in the digital currency field, and allow customers to participate in the digital currency market more conveniently. The fund will invest in mining farm construction, mining business and its upstream and downstream industries including but not limited to Bitcoin (BTC), Ethereum (ETH) and other digital currencies.
3. Lotto Interactive Entertainment (08198.HK): announced on December 2, 2020 that the group has turned into a profitable position in the third quarter of 2020, during which the group’s big data center services generated approximately HK$152.6 million in revenue. With the opening of the third big data center in late June 2020, the group currently operates three big data centers and provides customers with a series of comprehensive services such as premises, hardware support, power supply, supporting monitoring and management. The customers of the group’s big data center are mainly engaged in the cryptocurrency mining business.
4. Sun International (08029.HK): announced on March 29, 2021 that an indirect wholly-owned subsidiary purchased cryptocurrency mining equipment for 50 million yuan. On May 24, Sun International announced that the group will support and abide by the instructions of the Chinese government to stop related mining activities in China. In this regard, the group will discuss with relevant service providers and take necessary actions to continue its cryptocurrency mining activities in other countries or regions.
5. Baineng Group (01263.HK): The group is mainly engaged in the design, manufacturing and trading of graphic display cards for desktop computers, electronic manufacturing services, and the manufacturing and trading of other personal computer-related products and parts. According to the 2020 financial report business outlook, NVIDIA recently announced the launch of a cryptocurrency mining processor (“CMP”), specifically designed for cryptocurrency mining applications, and Boneng was appointed as one of the partners to deliver CMP solutions to satisfy the source Since the demand for cryptocurrency mining.
6. Synergy Communication (1613.HK): Announced on April 19, 2021, signing a share subscription agreement with Yaoling Co., Ltd. According to the agreement transaction completed, Synergy Communication holds 3.33% of Yaoling Co., Ltd. shares. Mainly engaged in open intelligent blockchain platform and storage mining technology (storage mining technology) related to blockchain and distributed cloud computing.
7. Yuxing Technology (8005.HK): Announced on May 14, 2021, signed a 290 million yuan cryptocurrency equipment purchase agreement with Wuhan Quanyaocheng Co., Ltd., with 2,416 equipment owned by the seller for cryptocurrency mining A10 pro 6G version and 7G version equipment.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.