Canaan Technology's Zhang Nangeng: China's ban should leave room for miners using green energy

Zhang Nangeng, chairman and CEO of Nasdaq-listed Canaan Inc., a Chinese company that specializes in bitcoin mining equipment, said in a conference call on Tuesday that China's bitcoin mining ban should leave room for green energy users.

Zhang Nangeng said that an indiscriminate ban on Bitcoin mining fails to take into account the potential economic benefits that could come from embracing green energy mining. He also said that mining could offer a solution to the problem of oversupply of electricity in some parts of the country, where the resulting low energy prices have begun to attract miners. "Miners seeking to profit prefer areas with low electricity prices, which indicates an oversupply of electricity in the area and may cause energy waste. Bitcoin miners also help create jobs in poor areas and contribute to local fiscal revenues," he said.

Canaan’s stock price jumped 24% on Tuesday, adding 42% growth for the week. Canaan’s stock surge came after the company released its financial results for the first quarter of the year, which showed impressive growth since this time in 2020. The company’s revenue grew 490% year-over-year, primarily from sales of its ASIC mining equipment.