Bitmain Technologies Ltd, one of the world's largest manufacturers of Bitcoin mining hardware, has suspended hardware sales as customers in China leave the market.
Bitmain Technologies Ltd., considered one of the leading Bitcoin mining companies, has announced that it will no longer sell spot delivery equipment worldwide. The massive release of miners flooded the market with used hardware and left little room for Bitmain Technologies to operate. High performance mining rig (ASIC) prices have dropped nearly 75% since April.
According to Bloomberg report, the hardware company has shared with the local mining community in China that it will stop selling new hardware due to a sharp drop in prices, making it unrealistic to make a profit. Despite this, the company said it will continue to provide equipment for future supplies of equipment used to mine small altcoins.
The report does not specify whether Bitmain Technologies will resume selling these new installations or not. If the company plans to simply postpone future sales, it could help miners leaving the industry to get better prices on their used hardware. The company also hopes that supply cuts could lead to higher prices for new models in the long term.
China and cryptocurrencies
2021 has been a busy year for the State Council of China as it continues to regulate and completely ban cryptocurrency mining activities across the country. Local governments across all entities, such as Sichuan province, which closed 26 large farms last week, are forcing miners to leave. A somewhat harsh ban in energy law prefectures has forced larger businesses to close stores and explore alternative locations.
So far, Texas and Kazakhstan have become the two main destinations for Chinese crypto miners.
As a result of this massive confusion, the cryptocurrency market has plummeted in both value and hash rate, and is also flooded with cheap mining rigs.
Used equipment from companies such as Bitmain is now on the secondary market for around $ 25 per THash / second. This number is about 200% lower than pre-April prices.