Key takeaways
What is Japan doing with Bitcoin mining?
Japan’s state-linked utility has begun mining Bitcoin using Canaan’s 4.5 MW Avalon platforms to balance renewable energy on its power grid.
Why is this important globally?
It is the first time a major developed nation has linked Bitcoin mining to national energy management.
A major Japanese utility (partly owned by the government) has started mining Bitcoin [BTC] using specialized Canaan machines connected directly to your electrical grid.
The initiative aims to use surplus renewable energy during periods of low demand, avoiding waste and helping to stabilize the grid.
If this approach expands, Japan could become one of the few countries where the government plays a role in Bitcoin mining, not for ideological reasons, but to optimize energy use.
Such a model could also position Japan as a pioneer in promoting “clean cryptocurrencies,” where sustainable energy use becomes central to blockchain operations.
Canaan’s commitment to balancing the network in Japan
New 4.5 MW Canaan deployment in Japan mark a significant change in integrating BTC mining operations with real-world energy infrastructure.
The company’s hydrocooled Avalon machines will be used as an on-off buffer, turning off when grid demand increases and turning on again when surplus renewable energy is available.
Source: investor.canaan-creative.com
It’s a modestly sized setup, but timing matters. Canaan just escaped NASDAQ delisting and followed up with the largest mining order in its history. Nangeng Zhang, President and CEO of Canaan, said:
“With our hydro-cooled Avalon servers equipped with an intelligent control chip and Bitcoin mining technology, utilities can leverage Bitcoin mining as a digital load balancer, improving both energy sustainability and network efficiency.”
This partnership is the first project linked to Japan’s government to use Bitcoin mining to help manage the power grid.
A list of state-aligned miners
On this basis, this deal also resolves a long-standing rumor in the industry.
VanEck’s Mathew Sigel noted in a post from X (formerly Twitter), that traders have whispered for years about utilities like TEPCO mining BTC in the background.
Source: Mathew Sigel/X
However, there was never public confirmation.
Now that Canaan has secured a 4.5 MW order from a major regional utility (one partially owned by the government), Japan now effectively falls into the same group as other state-linked mining jurisdictions.
This makes Japan the 11th country (outside the US) where government-affiliated infrastructure is directly involved in Bitcoin mining.
Why this matters
When a developed and strictly regulated market like Japan treats Bitcoin mining as a legitimate network balancing instrument, a conversation starts.
If a highly regulated energy market like Japan’s can justify Bitcoin mining as a flexible load asset, it changes the narrative from seeing it as an “energy waste” to recognizing it as an “energy buffer.”
That opens doors.
Other utilities – in Europe, in APAC, in fossil fuel-intensive networks – now have a policy example to point to.
