Iran’s largest Bitcoin mining facility resumes operations after Chinese bailout
On one hand, the Bitcoin spot market has been witnessing a surge, while on the other, the mining industry in certain regions is being stifled. After remaining shut for four months, Iran’s largest Bitcoin mining facility received good news today after it was allowed to resume operations.
As per reports, due to significant financial support offered by Chinese backers, the mining farm based in Rafsanjan in the Kerman province of Southeast Iran has been able to resume its operations months after it ran into troubled waters.
In January, when the country was seeing a spike in electricity blackouts, the authorities had ordered the closure of the mining company. This was due to the heavy load of electricity, nearly 175 megawatt-hour of electricity, consumed by the mining facility. This was almost a third of the total power allocated to tall mining operations in Iran.
Even though the news was a relief for the crypto-community and the business itself, many citizens remain concerned about it resuming operations as they believe that no efforts were taken to mitigate the electricity blackout problems.
Meanwhile, the Rafsanjan mining operation will be added to the long list of Chinese-backed Bitcoin mining facilities in Iran in its Southeast Special Economic Zone. There has been more money flowing into mining in other countries from the biggest crypto-mining facilitators of China. However, this money entering the country could be part of its “25-year contract.”
While some believe that China, in a way, is cornering the mining sector around the world, it has also rescued several facilities to keep the mining rigs up and running. While the Rafsanjan facility must be in a good state to work now, it may have to tackle the air quality woes faced due to mining across major cities.