State mining: Where has Bitcoin production become national strategy?

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Bitcoin production become national strategy

Japan joins the game

Japan has officially entered the club of nations where Bitcoin mining has reached the state level. Chinese hardware manufacturer Canaan announced a partnership with one of Japan’s largest power utilities — reportedly Tokyo Electric Power Company (TEPCO). The project aims to study power grid stability through Bitcoin mining — marking Japan’s first publicly confirmed state-linked mining initiative.

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Japan plans to use hydro-cooled Avalon A1566HA rigs capable of dynamically adjusting load on the grid. In this setup, Bitcoin farms effectively become digital grid balancers, helping prevent energy waste during low-demand periods.

Canaan noted that operations are expected to launch by late 2025, with the initiative forming part of a broader strategy to develop energy-efficient and grid-interactive computing systems. In other words, Japan is transforming mining from an energy consumer into a tool for optimization.

The early adopters

Japan is far from the first nation to make Bitcoin mining part of a national strategy. According to VanEck Research, at least 10 other countries are already mining Bitcoin through state-backed or state-owned entities. The pioneers were Bhutan and Iran, later joined by El Salvador, the UAE, Oman, and Ethiopia, which see mining as a way to attract investment and harness excess power capacity.

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In Bhutan, mining has become part of the national hydropower management program: the country uses surplus hydroelectric capacity to generate additional revenue in Bitcoin. The UAE and Oman are focusing on industrial parks for data centers, combining mining with the development of artificial intelligence infrastructure. Ethiopia is among the newest players, where mining is conducted with the support of Chinese firms and serves as a tool for expanding the national power network.

There are, of course, countries that prefer not to publicize their state-level mining activities. The true list of Bitcoin-mining nations could therefore be significantly longer than VanEck’s estimates.

Bans and restrictions

While some governments turn mining into an engine of economic growth, others still see it as a threat. The most prominent example is China, which in 2021 banned all cryptocurrency transactions and mining, citing energy strain and environmental concerns. Since then, most Chinese miners have gone underground or relocated their equipment to other countries.

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A similar picture can be seen in Algeria, Egypt, and Bangladesh, where cryptocurrency mining is also officially banned. Authorities justify the bans as measures to protect financial stability and prevent unauthorized energy use. In Kuwait, while there is no formal legal ban, authorities have been conducting large-scale raids and shutting down unlicensed farms, especially amid the ongoing power shortage.

Even in countries with strong crypto industries, the attitude remains mixed. The European Union is considering restrictions on Proof-of-Work mining due to its carbon footprint, while in the United States, several states have imposed temporary moratoriums and additional taxes on large data centers.

Mining as a new form of energy progress

Still, the global trend is clear. Governments are gradually realizing that fighting mining makes little sense — it’s far more effective to harness its potential. Bitcoin mining is no longer just about producing digital coins; it has evolved into a tool for optimizing energy systems, driving innovation, and attracting investment.

Mining allows countries to utilize excess electricity, promote renewable energy development, and build the digital infrastructure of the future. Where energy was once wasted, it can now be converted into an asset — one that’s easy to store, transfer, and use for international trade.

Each new example — from Bhutan to Japan — shows that mining can be an ally of sustainability, not its enemy, when integrated into a nation’s energy strategy. And as more governments come to this realization, Bitcoin will finally move from being a “controversial technology” to a national resource of the 21st century.

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