Canaan Was Counting Paused Ethiopia Mining Rigs as 'Operating' — Here's Why That's a Problem
5h ago · 1 source
Bitcoin mining hardware manufacturer Canaan reportedly included its paused Ethiopian mining operations as part of its total operating hashrate for July, with those operations accounting for nearly 35% of the reported figure. This raises questions about the transparency and accuracy of the company's self-reported mining metrics.
WHY IT MATTERS
Imagine a factory telling its investors it has 100 machines running, but 35 of them are actually turned off. That's essentially what happened here. Canaan, a company that both makes Bitcoin mining machines and mines Bitcoin itself, reported how much computing power it was using to mine — but included machines in Ethiopia that weren't actually running. 'Hashrate' is the measure of computing power used to mine Bitcoin — the higher it is, the more Bitcoin a company can potentially earn. By counting paused machines, Canaan made its mining operation look bigger and more productive than it actually was. This matters because investors use these numbers to decide whether to buy or sell the company's stock, and inaccurate reporting can lead to poor decisions.
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