State-Backed Bitcoin Mining Begins in Japan

Japan has begun mining Bitcoin through a project that connects its power grid to Canaan’s specialized mining machines. A major Japanese utility will use them to balance electricity demand by adjusting its activities to match the available renewable energy supply. 

Because the utility is partly government-owned, it is one of the few nations where the state participates in Bitcoin mining.

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Canaan Rebounds With Grid Partnership

Bitcoin mining hardware maker Canaan will deploy a 4.5-megawatt project using its Avalon hydro-cooled machines to help a Japanese regional utility manage power-grid fluctuations.

The deal uses Avalon rigs to balance Japan’s power grid by shutting off during peak demand and restarting when excess renewable energy is available. This helps the utility manage fluctuations and use surplus green power more efficiently.

It also follows a turbulent stretch for Canaan, which recently avoided being delisted from Nasdaq. The company then secured its largest-ever miner order, signaling renewed growth. 

Though modest in scale, the project is symbolically significant as Japan’s first government-linked crypto mining effort.

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Japan Blends Energy Policy With Bitcoin Mining

Japan’s power sector is dominated by ten regional utilities, all of which have some degree of government ownership and oversight. This makes the new mining project part of state-linked infrastructure, signaling a shift from private Bitcoin mining to public-sector involvement.

The initiative aligns with Japan’s digital-asset reforms to reclassify cryptocurrencies, simplify tax regulations, and expand regulated institutional participation. Together, these measures signal Japan’s coordinated shift toward mainstream, state-supervised crypto adoption.

The move also makes Japan one of the few advanced economies where the state indirectly backs Bitcoin mining. 

From Criticism to Innovation

Japan’s entry into Bitcoin mining could reshape global perceptions of the industry. By utilizing mining rigs to harness excess renewable energy, Japan’s model counters criticisms that Bitcoin is environmentally harmful. 

Furthermore, Canaan plans to expand similar projects across Asia, Europe, and North America, positioning Japan as a test case for sustainable, utility-integrated mining.