Cointime

Download App
iOS & Android

Bloomberg: A large number of old model mining machines are being refurbished due to the "Bitcoin halving" to be sold to overseas low-cost mining companies

  • Wechat scan to share

As the Bitcoin halving event approaches, American mining companies are constantly buying new mining machines to expand their computing power, while also dealing with their old model machines. About 6,000 old Bitcoin mining machines will soon be idle and sent to a warehouse in Colorado Springs, where they will be refurbished and resold to overseas buyers who hope to profit from mining in a low-cost environment. Since electricity is the biggest expense in Bitcoin mining, mining companies, including listed companies Marathon Digital Holdings Inc. and Riot Platforms Inc., need to reduce their usage costs to maintain positive profits. In theory, the computing power of old mining machines may still bring profits after the halving, but it is unlikely to be realized in the case of high electricity costs in the United States. According to Ethan Vera, the Chief Operating Officer of Luxor, a cryptocurrency mining service and logistics provider, about 600,000 S19 series mining machines (most of the machines currently in use) are being transferred from the United States to Africa and South America. Some buyers will wait until after the halving to purchase second-hand mining machines, as they believe that the price will drop further at that time. Data shows that in March 2022, the selling price of second-hand S19 model mining machines was about $7,030. One year later, with the decline in the price of Bitcoin, the price of second-hand S19 machines plummeted to about $900. With the upgrade of mining machines, the price of second-hand S19 has dropped to about $427 this month, and it is expected to be sold for about $356 after the halving in May. In addition, some American miners choose not to sell their hardware, but only transfer their equipment to areas with lower electricity costs and third-party data centers.

Comments

All Comments

Recommended for you

  • Bloomberg: G7 may discuss threats related to North Korea-backed crypto attacks in June

    According to Bloomberg, citing sources familiar with the matter, G7 leaders may discuss the escalating threat of North Korea-supported cyber attacks and cryptocurrency theft activities at next month's summit in Canada. The sources said that North Korea's funding of its regime through cybercrime has raised "serious alarms" - White House officials previously disclosed that North Korea is financing its military weapons program through cryptocurrency looting.
  • U.S. Treasury Secretary Benson: Expect first quarter GDP data to be revised upward

    US Treasury Secretary Besent: It is expected that the GDP data for the first quarter will be revised upwards.
  • Trump: I don't expect a third term as president

    President Trump said, "I do not look forward to a third term as president."
  • BTC falls below $95,500

    the market shows that BTC has fallen below $95,500, now trading at $95,494.83, with a 24-hour decline of 0.63%. The market fluctuates greatly, so please be prepared for risk control.
  • BTC breaks through $97,000

    the market shows BTC breaking through $97,000, now trading at $97,011.43, with a 24-hour increase of 0.85%. The market is volatile, please manage risks.
  • BTC breaks through $96,000

    the market shows that BTC has broken through $96,000 and is now trading at $96,014.98, with a 24-hour increase of 1.15%. The market fluctuates greatly, so please manage your risks well.
  • Binance Wallet’s New TGE B² Network is Now Available for Investment

    according to official page data, Binance Wallet's new TGE B² Network is now open for investment, with an end time of 18:00 (UTC+8). The participation threshold for this TGE is that Alpha points must reach 82 points.
  • The price of ALPACA perpetual contract on Binance platform rose by more than 25% in the past 5 minutes

    the current price of ALPACA perpetual contract on the Binance platform has risen by over 25% in the past 5 minutes, now falling back to $1.3683. At the same time, the spot price of ALPACA is $1.22, showing a significant price difference.
  • To participate in Binance Wallet's new TGE B² Network, you must have 82 points

    according to the official announcement, Binance Wallet has announced the participation threshold for the new B² Network (B2) TGE, with Alpha points needing to reach 82 points.
  • EIA Temporarily Suspends Emergency Survey of Bitcoin Mining Industry

    The US Department of Energy has temporarily suspended its emergency survey of Bitcoin mining operators' energy usage. The Energy Information Administration (EIA) will halt its mandatory survey for over a month and keep the data that had already been secured from stakeholders in the Bitcoin mining industry earlier this February. Riot Platforms and the Texas Blockchain Council had previously sued the administration of President Joe Biden, planning to boycott the survey citing that it could cause potential harm to businesses by compelling them to release confidential and sensitive information. The plaintiffs requested a permanent injunction from the court which mandates that EIA first complies with the law before going ahead to request the data.