Hydropower stations and related types of equipment are being offered for sale on online trading platforms in China, apparently by cryptocurrency mining enterprises, as several provinces in the country mete out stricter measures to restrict mining.
A hydropower station located in Liangshan Yi Autonomous Prefecture in Southwest China’s Sichuan Province is being sold on Alibaba’s online secondhand trading platform Xianyu.
According to the seller, the Liangshan station is registered with State Grid and has an installed capacity of 8,750 kilowatts. The seller noted that he borrowed 30 million yuan ($4.6 million) to buy the station and is now selling it for about 60 million yuan, including the loan.
The item has been viewed more than 9,600 times and 92 buyers have been in touch with the seller.
In the comment area for the item, the seller revealed that the hydropower station belongs to a cryptocurrency mining company based in Sichuan. He told the Global Times in a private conversation that the company will not sell mining machines.
Sichuan ordered a halt to mining on June 18, which means nearly 90 percent of China’s Bitcoin mining capacity or over 50 percent of the global capacity has been shut down, according to industry data.
North China’s Inner Mongolia Autonomous Region, Northwest China’s Qinghai Province and other locations have issued orders to severely crack down on cryptocurrency mining.
Some industry observers told the Global Times that more than 2 million Bitcoin mining machines are now idle across the Chinese mainland, with emerging overseas markets only able to accommodate 5 percent of the capacity.
A staff member of the Sichuan Energy Regulatory Office of the National Energy Administration told Global Times on Thursday that the agency is continuing to cut off power supplies for cryptocurrency mining companies.
The southwest province has been a hub for cryptocurrency mining companies because of its rich hydropower resources.
A total of 116 power plants connected to the national power grid were found that had direct mining loads last year in Sichuan, with a total capacity of about 2.28 million kilowatts, according to statistics released by the Sichuan division of State Grid on Thursday.
“China now allows factories or enterprises with actual demand to generate electricity for their own use. But they all need the approval of local power grid companies, such as local divisions of State Grid.
“Even if the self-generated electricity is not connected with the national grid, approval is still necessary,” Sheng Honglei, business director of TÜV Nord Group China, told the Global Times on Thursday.
Bitcoin mining machines are special computers that earn Bitcoin by running algorithms. These computers generally require a large number of graphics cards, which consume a lot of power, said State Grid.
A worker checks on Bitcoin mining equipment at a facility in the Garze Tibetan Autonomous Prefecture, Southwest China’s Sichuan Province. File photo: VCG
