One of the world’s largest Bitcoin mining-rig manufacturers, Bitmain Technologies Ltd, has suspended sales of machines as clients free the market.
Bitmain Technologies Ltd. considered one of the top bitcoin mining-rigs makes made the announcement to halt sales of hardware for spot delivery globally. The idea behind the move is to prop up local prices after cryptocurrency miners continue to be run out of town. The mass exodus of miners has flooded the market with used equipment and left little room for Bitmain Technologies to operate within. The prices of a top-of-the-line rig fell nearly 75% since April.
According to a report by Bloomberg, the hardware company shared with the local mining community in China that it will cease selling new equipment due to the sharp fall in prices, making it unrealistic to turn a profit. Despite this, the firm did say it will continue to provide gear for future delivery of hardware used to mine smaller altcoins.
The report did not stipulate if or when Bitmain Technologies will resume selling these new rigs or not. If the company plans to just merely postpone future sales, it could assist miners leaving the industry to get better prices for their used mining equipment. The company is also hoping that the dwindling supply could raise prices for new machines in the long term.
China’s crackdown on crypto mining
2021 has been a busy year for China’s State Council as they continue to regulate and outright ban crypto mining activities nationwide. Local governments across the nation such as Sichuan, who closed 26 mines last week, are sending miners packing left and right. The somewhat abrupt ban in energy right prefectures has forced larger operations to close up shop and explore alternative locations.
So far, Texas and Kazakhstan have emerged as the prime two destinations for displaced Chinese crypto miners.
As a result of this mass confusion, the crypto market has taken a dive in both value and hash rate along with flooding the market with cheap mining rigs.
Used machines from companies like Bitmain are now selling on the second-hand market for around $25 per THash/second, which refers to the computing power of the rig. That number is down nearly 200% from what prices were before April.