Japan is integrating Bitcoin mining into its national energy strategy, leveraging the technology to stabilize its power grid and maximize the use of renewable energy in a state-linked initiative.
Chinese firm Canaan announced on Thursday it would supply Bitcoin mining equipment to a major Japanese electricity company. This agreement marks the country’s first publicly acknowledged state-aligned project in the cryptocurrency mining sector.
The initiative aims to use the mining servers as “digital load balancers,” capable of adjusting energy consumption in real-time. This system will help prevent the waste of surplus renewable energy, such as power from solar or wind farms during periods of low demand.
Canaan’s Avalon A1566HA liquid-cooled servers are designed for controlled “over-acceleration and under-acceleration” to manage network load effectively. The project is expected to commence operations before the end of 2025.
While Canaan did not disclose the name of its Japanese partner, previous reports have linked Tokyo Electric Power Company (TEPCO), the nation’s largest utility, to similar experiments. A 2024 report by the Asahi Shimbun indicated that Agile Energy X, a TEPCO subsidiary, had tested mining facilities in the prefectures of Gunma and Tochigi for this purpose. TEPCO did not respond to requests for comment.
Matthew Sigel, head of digital assets at VanEck, noted that this collaboration places Japan on a list of eleven nations, excluding the United States, that are mining Bitcoin with government resources. He emphasized that the involvement of national energy infrastructure signifies a paradigm shift in institutional Bitcoin adoption within Asia.
The project unfolds within a supportive regulatory environment in Japan. The country has recently reclassified cryptocurrencies as financial instruments and proposed a flat 20% tax on capital gains from digital assets, seeking to attract foreign investment and enhance market certainty.
Canaan CEO Nangeng Zhang stated that the Japanese project is part of a broader global strategy focused on energy-efficient, grid-interactive mining solutions. The company plans to expand similar implementations across Asia, North America, and Europe starting in 2026.
This initiative is seen as a potential model for other countries looking to utilize Bitcoin mining as a tool for energy stability rather than solely as an environmental concern.