Japan has begun mining Bitcoin through a project connecting the grid with specialized Mining Rig from Canaan. A major Japanese power company will use the machines to balance electricity demand, adjusting operations according to the amount of renewable energy available.
Since the power company is partially state-owned, Japan becomes one of the few countries with state involvement in Bitcoin mining.
Canaan Recovers Through Partnership with Grid
Bitcoin mining hardware maker Canaan will deploy a 4.5-megawatt project using water-cooled Avalon machines to help a Japanese regional power company manage grid fluctuations .
The deal uses Avalon arrays to balance Japan’s grid: turning them off during peak hours and turning them back on when there is a surplus of renewable energy . This allows the utility to better manage fluctuations and make better use of the surplus green electricity.
The move also comes after a tumultuous period for Canaan , which narrowly avoided being Delisting from the Nasdaq. Shortly after, it received its largest Mining Rig order ever, suggesting that growth is returning.
While modest in scale, the project carries symbolic significance as the first government-linked crypto mining effort in Japan.
Japan combines energy policy with Bitcoin mining
Japan’s electricity sector is Vai by ten regional power companies, all of which have some degree of government ownership and oversight. As such, the new mining project is part of a public-sector infrastructure, marking a shift from a private Bitcoin mining model to public participation.
The initiative is in line with Japan’s digital asset reforms to reclassify cryptocurrencies, simplify tax regulations , and expand regulated institutional participation. Collectively, these moves represent a concerted shift by Japan toward mainstream crypto adoption under state oversight.
The move also makes Japan one of the few developed economies where the state indirectly supports Bitcoin mining.
From criticism to innovation
Japan’s entry into Bitcoin mining could reshape how the world views the industry. By using Mining Rig rigs to tap surplus renewable energy, the Japanese model helps counter critics who say Bitcoin is harmful to the environment.
Canaan plans to expand similar projects across Asia, Europe and North America, making Japan a test bed for sustainable mining in conjunction with power infrastructure.
