Japan has started mining Bitcoin through a project that connects its power grid to Canaan’s dedicated mining machines. Japan’s major power companies plan to use these to balance electricity demand by adjusting their activities to the available renewable energy supply.
This power company is partially government-owned, making it one of the few countries with national participation in Bitcoin mining.
Canaan recovers with power grid partnership
Bitcoin mining hardware manufacturer Canaan will deploy a 4.5-megawatt project using Avalon water-cooled machines to help Japan’s regional power companies manage power grid fluctuations.
The contract will use the Avalon rig to balance Japan’s power grid by shutting it down during peak demand and restarting it when renewable energy is available. This helps power companies manage fluctuations and use surplus green power more efficiently.
Canaan (NASDAQ: $CAN) secures 4.5 MW contract in Japan 🇯🇵
Our Avalon® A1566HA water-cooled cooling server helps major power companies stabilize their power grids with smart chip control for real-time energy optimization ⚡
Bitcoin mining → Energy innovation 🌍
🔗…
— Canaanio Co., Ltd. (@canaanio) October 30, 2025
It was also a turbulent development for Canaan, which recently avoided delisting from the Nasdaq. Subsequently, the company received its largest ever minor order and showed new growth.
Although this project is modest in scale, it is symbolically important as Japan’s first government-sponsored virtual currency mining initiative.
Japan combines energy policy with Bitcoin mining
Japan’s electricity sector is dominated by 10 regional power companies, all of which have some degree of government ownership and oversight. This makes new mining projects part of a nationally coordinated infrastructure, signaling a shift from private Bitcoin mining to public sector involvement.
Rumors have been circulating for years that Tokyo Electric Power Company (9501 JP) is secretly mining Bitcoin, but nothing has been confirmed.
Now, $CAN has ordered 4.5 MW from a “major regional power company” in Japan, finally adding Japan to the list of countries where the government mines Bitcoin. https://t.co/d7HkLLrigk pic.twitter.com/D5kebQGR4q
— Matthew Siegel, CFA Recovering (@matthew_sigel) October 31, 2025
This initiative is in line with Japan’s digital asset reform, which aims to reclassify cryptocurrencies, simplify the tax system, and increase the participation of regulated institutions. Taken together, these measures demonstrate the Japanese government’s concerted move towards mainstream state-supervised cryptocurrency adoption.
The move also makes Japan one of the few developed countries where the state indirectly supports Bitcoin mining.
From criticism to innovation
Japan’s entry into Bitcoin mining could change the world’s perception of the industry. by Japan’s model of using mining rigs to tap surplus renewable energy refutes criticism that Bitcoin is harmful to the environment.
Additionally, Canaan plans to expand similar projects across Asia, Europe and North America, positioning Japan as a test case for sustainable utility-integrated mining.
The post “Japan launches Bitcoin mining as part of national energy strategy” was first published on BeInCrypto.
