Bitmain, the largest manufacturer of bitcoin mining rigs, announced that it is reducing prices by 70%, despite a crypto bearish market and global energy crisis. The prices for bitcoin mining equipment have dropped by around 70% in the past year.
Miners are struggling in a market where bitcoin prices have fallen 60% since the beginning of 2022. This has had a negative impact on their revenue. The price of energy, which is a significant operational cost, has risen as Russia’s oil and gas flows have dwindled after its invasion of Ukraine. This has driven up prices around the world.
Bitmain Sales have dropped by nearly 70%
Bitmain stated in a Tuesday Tweet that it would lower the Antminer S19 Pro 100 Terahash (TH), model’s price to $19/TH. This is about 30% less than the market price as per an index maintained and maintained by Luxor Technologies.
Bitmain did not specify the price before the discount. According to the terms of the deal, only 200 machines are eligible for the discount. According to Lauren Lin, an operations manager at Luxor’s ASIC Trading Desk, bulk buyers will likely also buy the Antminer S19 XP models at more than $45/TH.
A terahash (metric unit of computing power or hashrate on the Bitcoin network) is one unit. To make it easier to compare models, mining machines (also known as application-specific circuits) are usually priced per terahash.
Prices per terahash mining power have dropped more than 50%
As a result of a bull market that saw bitcoin prices soar, miners clamored to sign advance contracts. Since then, demand has slowed down and the price for rigs has fallen from an average $68/TH on January 1 to $20.8/TH by Sept. 20, Luxor Technologies data shows.
Denis Rusinovich co-founder of CMG Cryptocurrency Mining Group, Maverick Group, said, “The market is choking in the volume of new hardware. Some that was preordered, financed with hopes of expansion.” A month ago, hardware imported into North America was as cheap as $1.5/TH in comparison to China. This was an indicator of how many North Americans were flooded with hardware.
According to conversations with analysts Matt Schultz (executive chairman of bitcoin miner CleanSpark) estimates that there are between 250,000 and 500,000 new mining machines in boxes all over the U.S.
Jaran Mellerud, Arcane Research analyst, stated that “Bitmain’s discount price of $19/TH is certain to lead the rig market further down.”