Japan recently took a major step into the global bitcoin mining race, becoming the 11th country to launch a government-backed mining initiative, according to CoinPedia. The move marks a shift for a nation previously known for its cautious approach to cryptocurrency and positions Japan alongside early adopters such as El Salvador, Bhutan, and the United Arab Emirates.
According to the news outlet, Japan's Ministry of Economy, Trade, and Industry will lead the effort to launch a 4.5-megawatt bitcoin mining project in partnership with Canaan Inc. and a state-owned utility provider. Scheduled to launch in late 2025, the facility will run hydro-cooled Avalon A1566HA mining rigs and will be powered using excess renewable energy from regional solar and wind systems.
Reports say the mining center will act as a digital "load balancer," scaling its energy use depending on grid supply. That flexibility is designed to support Japan's renewable energy goals while testing whether bitcoin mining can be integrated into the country's broader digital and economic strategy.
Japan's move comes at a moment when government-backed bitcoin mining is expanding globally. According to VanEck Research, the number of participating nations has grown from just two in 2020 to 11 today — including Russia, France, Iran, Argentina, Ethiopia, Kenya, and others that mine bitcoin directly or through state-owned companies.
While bitcoin mining is often criticized for its heavy energy use, its carbon pollution varies widely depending on where the power comes from. Some operations rely on energy sources like gas, oil, and coal, but others — particularly projects using extra renewable energy — can arguably help stabilize grids and even offer new revenue streams to support clean energy buildout.
As Japan's pilot project leans on surplus solar and wind, it reflects a growing trend of exploring lower-carbon ways to participate in the crypto economy.
"As residential, AI compute, and high-density data centers place increasing pressure on national power systems, we are seeing rising demand for our energy-efficient, grid-interactive solutions across Asia, North America, and Europe," said Canaan's chairman and CEO, Nangeng Zhang.
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