BTCM Stock Alert: What Is Going on with Crypto Miner BIT Mining?

Cryptocurrency mining company BIT Mining (NYSE:BTCM) is contemplating big moves amid concerns that its Kazakhstan mining operations will be affected by unrest in the country. BTCM stock has been in flux today as investors evaluate uncertain news from the company.

Concept art of crypto mining with little figuring and a Bitcoin (BTC) token.
Source: Shutterstock

If you recall, BIT Mining moved much of its operation from China to Kazakhstan this past summer. In hindsight, this could come back to bite the company. Now, Kazakhstan is experiencing major internet blackouts — likely in response to anti-government protests across the country. Despite this, many Bitcoin (CCC:BTC-USD) mining operations plan on maintaining their presence in the area.

Among them, BIT remains optimistic about the situation. Per Coin Telegraph, a spokesperson for BIT Mining said, “It is unlikely that our mining machines will be evacuated to North America.” Additionally, the representative reassured investors that Kazakhstan isn’t the company’s primary place of business. They noted that BIT operates many productive mining machines in North America as well.

So, what else do you need to know about BIT Mining’s woes today?

BTCM Stock Stagnant on International Concerns

As of 5:00 PM on Jan. 6, Kazhakstan was in the midst of a more than 36-hour internet blackout. The nation is in a state of emergency as violent protests emerge over rising fuel costs and the country’s leadership.

The blackout has had cascading effects on Bitcoin mining; 12% of the crypto’s worldwide computational power is gone. Likewise, hash rates for a number of popular mining pools have seen similar declines. According to Cointelegraph, Chinese blockchain journalist Colin Wu reported the following:

“Some Kazakhstan miners told us that the internet was temporarily restored on January 7th. In addition, the 4G network of Chinese phones is also intermittently effective. The industry expects that the country may return to normal next Monday.”

These events have proven unfortunate for BTC-USD, no doubt. The coin fell an additional 3% today, adding to an already tumultuous week for the crypto.

The long-term effects of this blackout remain to be seen, but crypto bulls are certainly wincing.

On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

Article printed from InvestorPlace Media,

©2022 InvestorPlace Media, LLC