Bitmain Technologies is stopping sales in an effort to prop up local prices after crypto miners fleeing China have started dumping used mining rigs on the market. By postponing sales, Bitmain can help these miners exiting the industry get better prices for their machines. In addition, it could also be a benefit if the reduced supply buoys prices over the longer term for new machines.
A spokesman for the company confirmed that it would continue to sell gear for future delivery of devices used to mine smaller altcoins. But he did not say when the business would start selling machines again.
Miners leaving China due to government crackdown
Back in May, China’s cabinet – the State Council – called for a renewed crackdown on cryptocurrency mining and trading activities. In response, local governments were quick to sever power to mining facilities in their jurisdictions.
This crackdown is spurring more and more miners to uproot or abandon their operations, heading to more welcoming countries, including the U.S. and Canada. In the process, they’ve begun to flood the domestic market with cheap machines.
Top-of-the-line mining machines from Bitmain and other mining hardware companies are now being sold at 150 yuan ($23) per THash/second – the reference unit for their computing power – on the second-hand market. In comparison, these same machines were selling at 600 yuan ($92.64) back in April, when Bitcoin hit an all-time high of $64,870.
China’s crackdown on cryptocurrency mining comes amid concerns of both the digital coin’s environmental impact as well as their decentralized nature.
Author: Franz Walker
Franz Walker is a news journalist who reports mostly on topics related to health, science, and financial markets. His articles have been published by science.news, newstarget.com, naturalnews.com, journalism.news and pharmaceuticalfraud.com.