- Bitmain, the world’s biggest supplier of crypto mining hardware, has stopped the sale of new machines
- China’s crypto mining crackdown has resulted in a glut of second-hand machines into the market
- Bitmain will re-enter the market when the supply has stopped outstripping demand
Bitmain, the world’s biggest manufacturer of crypto mining machines has had to halt global sales of its devices following a glut of machines into the market due to China’s cryptocurrency mining ban. The Chinese company, which was recently subject to a lengthy ownership battle, has stopped sales of new machines as prices for top-tier rigs have plunged by about 75% since April. This decision is twofold as it helps miners leaving the industry get better prices for their old machines and it also allows Bitmain to potentially benefit from the reduced supply of new machines over the long term.
China Ban Leads to Mining Machine Glut
China’s latest clampdown on cryptocurrency mining in the country has led to a large-scale exodus of mining operations in the country. Some have decided to keep going in other countries such as America and Kazakhstan, while others have had no choice but to shut up shop, resulting in tens of thousands of mining machines and GPUs flooding the market as these former miners try to recoup as much as they can.
Bitmain Says Demand Could Rise Again in 2022
Realising what the closure of hundreds of cryptocurrency mines will mean for the crypto mining hardware market, Bitmain has sensibly called a halt to the sale of its machines until the flood has receded. Estimates are that the over-supply in the market could last for around six months as the more desirable machines are bought up and shipped abroad while the older machines are disposed of.
Bitmain expects that by 2022 demand for new mining machines will have recovered and they can ease themselves back into the market.