Bitmain Technology, the world’s largest producer of Bitcoin mining hardware, has temporarily suspended orders for new mining machines for the second time in a month, according to sources familiar with the matter. After a surge in excess supply of miners, Bitmain is struggling to satisfy demand, which has resulted in miners being sold at below-market prices to the second-hand market.
In late February 2018, Bitmain, the world’s largest Bitcoin mining hardware manufacturer, reportedly issued a statement to clients suspending orders for new mining machines. The company is apparently under increasing pressure to cut orders and maintain its unprofitable status quo, according to several sources. The news was most notable because it’s the latest indicator that the steady increase in secondhand mining gear is putting some pressure on Bitmain’s bottom line.
There are a number of reasons why secondhand miners are important for the mining community. In a previous article, I explained the first one, which is that, due to the long lead time involved in planning, manufacturing, and shipping mining rigs, it can take months before a new miner is actually available for sale. During that time, if you want to buy a secondhand miner, you have to settle for a brand-new one. That’s not the case with secondhand machines, however. You can buy a secondhand miner at any time, and it will have the same energy usage and power efficiency as a new machine.. Read more about asic mining and let us know what you think.
Chinese mining giant Bitmain is reportedly trying to capitalize on market conditions amid a massive crackdown on cryptocurrency mining by local authorities.
Bitmain has suspended global spot sales of its new bitcoin (BTC) mining equipment to prevent customers from suffering losses during the massive sale on the secondary market, according to a report by Chinese news agency Sina Finance on Wednesday.
By delaying the sale, Bitmain wants to help departing miners get better prices for mining equipment and protect the company from further price declines in the long run, Bloomberg reports. A Bitmain spokesperson said the company would continue to support small altcoin mining devices. A company spokesperson would not say when Bitmain plans to resume global spot deliveries.
Arthur Lee, founder of Bitmain-backed mining startup Sai Technology, highlighted the intense pressure on the market for used Bitmain miners. Some top miners from Bitmain and rival Whatsminer are now selling for about 150 yuan ($23) per terahash per second, up from 600 yuan ($93) in April, when bitcoin hit a record high of more than $64,000.
Related: Bitcoin hashrate reaches 8-month low due to Chinese miner shutdown
The sharp drop in the price of ASIC miners for bitcoin mining comes at the same time as a significant drop in the price of Nvidia GPUs, which are often used for mining cryptocurrencies. As previously reported, prices for some graphics cards in China on domestic e-commerce sites fell by two-thirds in June.
Bitmain is reportedly considering a move abroad. As reported by Chinese journalist Colin Wu, the company announced Tuesday that it is moving completely abroad.
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