Lately, crypto mining operation in China has been informed to the immediate & termless suspension for inspections by local authorities such as the Chinese National Development and Reform Commission (NDRC) branches and the Energy Bureau. Consequently, almost all miners in Inner Mongolia, Xinjiang and Qinghai are being forced to shut down one after another, an enormous number of mining rigs quit working, bringing the total network hashrate once falling below 100EH/s. In Sichuan, one of the largest hydro-based crypto mining hubs in mainland China, miners have just been informed as of late and even facing a more strict decree than other provinces, which is far beyond our expectation. It is obvious as never before that entire crypto mining industry in China is now under enormous pressure. Mining rigs migration is becoming the hottest topic in domestic mining market.
Mars and Poolin SG team kicked off overseas exploration 3 months ago and talked with multi-counterparties on incremental facility setting up. Pilot batch machines have been sent to overseas from this May already. As per our view, in short term we can’t rely on Sichuan hydro-mining stations anymore so we will send major batches to our new sites in North America and Kazakhstan from now on.
Continues punches by Chinese governments made considerable impact on Mars project also. Although we have a few overseas mining sites, the majority of mining rigs under Mars Project stays in China. Electricity halt appeared on Mars Project machines from end of May, batch by batch, while wBTC/ETH 100% output maintained block by block so far. As the pioneer of standardized hashrate certificate, we sure tried our best to ensure 100% interest of Mars residents. After Sichuan (China) policy boots down, we realize this time’s unexpected shutting down would eventually made unbearable economic loss on whole project which would likely leads to operational hardness. In this case, team decides to pause the wBTC/ETH output for all pBTC35A and pETH18C for less than 60 days which corresponding the estimated schedule of miners migration. In the same time, MARS earnings would keep still and be distributed to every single staking.
In view of the tougher regulations of China and the pending uncertainties, there’s a consensus that moving overseas (ideally North America) ASAP as an approach to compliance would be the logical choice for the sustainable development of crypto mining operations, which is in fact what Mars team have been working diligent lately. As one of the leading firms in the field of crypto mining, the high standard operation and maintenance of crypto mining has always been our profession and priority. To proceed the relocation and take Mars project back to normal as soon as we can, operation team would pack and transport mining rigs to new sites, 35–40 days is the medium predict time. Once first batch landed and ran, pBTC35A/pETH18C output >0 again within real-time online ratio (for example, 2,000 miners start working in new site vs. total number 5,000, online ratio is 40% and 40% of nominal output then).
No staking rewards on wBTC/ETH but MARS token will be distributed, applies immediately to all the current activating single asset & LP vaults except ‘MARS Diamond01(LP)’ and ‘MARS Diamond04 (SLP)’. Other features of Mars project remain unchanged.
In previous 30days, Mars US team has visited a lot of mining farms and signed long term facility hosting contracts with some mining farms under top-tier names. Quite confident that we can work it out with our US partners. We regards this migration as a restructuring, whole system would be healthier and robust after that.
In Mars we trust!
Thanks all for the support!
Mars & Poolin SG team