The global blockchain industry has seen Chinese and international publicly traded companies diverge significantly in their operational focus. An analysis of 8 blockchain-related Chinese stocks reveals their predominant involvement in cryptocurrency-centric operations—mining hardware sales, crypto mining, and exchange platforms—while domestic A-share blockchain stocks primarily engage in blockchain technology development and industrial applications.
Key Players in Mining Hardware
Canaan Creative (NASDAQ: CAN)
- Core Business: ASIC miner design/manufacturing under "Avalon" brand
Milestones:
- Sold 5.94 million TH/s hashrate in Q2 2021 (company record)
- Major clients include Mawson Infrastructure Group and Genesis Digital Assets
- Mining rig pre-orders booked through June 2022
- Diversification: Launched proprietary mining operations in Kazakhstan (June 2021) with plans to allocate ≥10% of monthly production to self-mining
Ebang International (NASDAQ: EBON)
- Primary Product: "Ebit" mining rig series
Expansion Strategy:
- Established Singapore subsidiary for crypto exchange development (August 2020)
- Acquired regulatory licenses in Canada, Australia, and New Zealand
- Launched EBONEX exchange platform (April 2021)
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Traditional Companies Entering Crypto
The9 Limited (NASDAQ: NCTY)
- Original Sector: Online gaming
Blockchain Transition:
- Initiated crypto operations January 2021 via partnership with former Canaan executives
- Aggressively acquired Bitcoin, Filecoin, and Chia mining equipment
- Developed NFT platform (August 2021)
Sino Global Shipping (NASDAQ: SINO)
- Core Industry: Maritime logistics
Crypto Integration:
- Acquired 51% stake in mining firm JiuLian Intelligent (controlling 2.8% Bitcoin network hash)
- Purchased 2,783 mining units (March 2021)
- Implemented Bitcoin payment acceptance for logistics services
Transitioning Fintech Companies
BIT Mining (NYSE: BTCM)
- Former Identity: 500.com (online lottery platform)
Strategic Shift:
- December 2020: Entered crypto mining sector
- Established mining facilities in Kazakhstan and Ohio
- Acquired BTC.com from BitDeer (March 2021)
Bit Digital (NASDAQ: BTBT)
- Previous Operation: P2P auto lending (Dianniu Finance)
Transformation:
- Fully exited P2P operations (February 2020)
- Rebranded as Bitcoin mining company (September 2020)
Regulatory Considerations
China's explicit prohibition of virtual currency mining/trading contrasts with international markets' more ambiguous regulations. Industrial and Commercial Bank of China blockchain expert Li Peng notes: "Domestic blockchain development emphasizes practical solutions rather than speculative cryptocurrency activities."
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FAQs
Q: Why are Chinese blockchain stocks focused on cryptocurrency operations?
A: Many originated from fintech/payment backgrounds with existing financial infrastructure expertise, allowing smoother transition into crypto-adjacent services compared to pure tech firms.
Q: What risks do transitioning companies face?
A: Volatile crypto markets, regulatory uncertainty, and technological adaptation challenges pose ongoing viability concerns—particularly for firms without sustainable non-crypto revenue streams.
Q: How does China's mining ban affect these stocks?
A: Companies have relocated operations overseas (e.g., Kazakhstan, North America), though increased operational costs and geopolitical factors create new complexities.
Q: Are any Chinese blockchain stocks developing non-crypto applications?
A: Current analysis shows 92% prioritize cryptocurrency-related activities, with limited resources allocated to enterprise blockchain solutions.
Market Outlook
While blockchain adoption grows globally, Chinese stocks' crypto-centric models face unique challenges. As BIT Mining CFO Alex Wu states: "Our complete rebranding reflects commitment to becoming a full-spectrum cryptocurrency company, though we maintain flexibility for blockchain technology applications should market conditions change."