TL;DR
- Japan has officially joined the list of countries supporting Bitcoin mining with government involvement, becoming the 11th nation globally.
- A significant 4.5 MW order from Canaan, a Bitcoin mining hardware manufacturer, with a Japanese utility confirmed government-aligned mining.
- The move has boosted Bitcoin-related stocks and coincided with a rebound in Bitcoin’s price, signaling growing institutional interest in digital assets within Japan.
Japan has now become the 11th country to have Bitcoin mining backed by government resources, according to VanEck’s Matthew Sigel. The addition follows a deal between Bitcoin mining hardware company Canaan and a Japan-based utility that will utilize Avalon mining rigs to manage regional grid load efficiently. This initiative aligns with the government’s partial ownership in the country’s 10 regional utilities, creating a state-aligned approach to mining operations.
The announcement highlights Japan’s increasing involvement in crypto under Prime Minister Sanae Takaichi, while the financial regulator moves to integrate digital assets more systematically into traditional banking frameworks. Analysts suggest that this move may encourage more institutional investors to consider Japanese crypto markets, while local startups could benefit from expanded mining infrastructure and technical partnerships.
Canaan Secures Utility Deal to Support Grid Stability
Canaan’s recent 4.5 MW order from the Japanese utility has drawn attention from VanEck, prompting the update to its government-backed mining list. The utility plans to operate Avalon rigs during periods of excess electricity generation, helping stabilize the grid while simultaneously mining Bitcoin. This approach has gained popularity among energy providers globally as a dual solution for power efficiency and cryptocurrency generation.
Canaan’s stock (CAN) responded with a 14.5% surge, trading at $1.42, with intraday fluctuations between $1.36 and $1.48. Trading volume reached 24 million shares, reflecting strong investor interest following the deal.
Bitcoin and Mining Stocks Show Momentum
The broader Bitcoin mining sector, including MARA Holdings (MARA), Riot Platforms (RIOT), CleanSpark (CLSK), and Core Scientific (CORZ), saw gains alongside the news. Core Scientific led the sector with a 4.82% increase, reaching $21.74 per share. Bitcoin itself has rebounded from $106,500 to above $110,000, trading near $109,985, as buy-the-dip strategies and optimism among derivatives traders fueled the price recovery. The market appears to be responding positively to broader institutional adoption trends and emerging regulatory clarity in several Asian jurisdictions.
This development positions Japan as a notable player in global Bitcoin mining, merging energy management with cryptocurrency production, and signaling increased institutional acceptance of digital assets in the region.
