Although the leading bitcoin mining machine manufacturers doubled their prices by taking advantage of the strong demand brought about by the soaring prices, they still sold out their inventory for the next three months within a few weeks.
According to CoinDesk’s previous report, at the beginning of December, the official website of Ant Mining Machine had pre-sold Bitcoin ASIC mining machines, and the expected delivery date is May 2021. Less than a month later, the mining machines on Bitmain’s official website have been sold out until the futures in August 2021, and the price has been substantially increased.
At the end of November, the price of Bitmain’s Ant S19 was $1,897. Now, the price of the same machine is $3,769, an increase of 98%.
Kevin Zhang, vice president of business development at Foundry, a mining company in New York, mentioned that Bitmain’s price has risen and pointed out that the demand for new ASICs shows no signs of weakening soon. “But from May next year to July next year, the additional allocation for S19 and S19 Pro models is also very limited.”
As miners are eager to buy any available machine, the secondary mining market continues to benefit from the low inventory of primary manufacturers, and its activity has surged to its highest level since 2017. According to Luxor Mining data, the price of more efficient second-hand models has climbed to a 12-month high. Technical market data.
Amanda Fabiano, director of mining at Galaxy Digital, said: “The secondary market is also booming.” She told CoinDesk in an email: “The S9, which was sold for $20 in May 2019, is now selling for 130 on certain channels. Sold at a price of US dollars.”
As the mining activity surges, Bitcoin will increase by more than 300% by the end of 2020, and the current transaction price has exceeded $30,000. According to the data, the income of miners has also soared, and the dollar amount (TH/s) earned per second per TH computing power on Sunday reached 1.6 yuan, the highest level since August 2019.
In order to meet the growing market demand, Bitmain “has improved the efficiency and functionality of our manufacturing plant,” said Nathaniel Yu, director of international marketing.
But Yu believes that as “more institutional investors are interested in cryptocurrency and blockchain technology,” the demand for mining machines will not fade anytime soon.
The current state of the mining machine market is described as a “perfect storm” with limited capacity: manufacturing plants have limited capacity, large factories have purchased supplies, and companies with stable balance sheets have entered the market and are able to place large orders.
These huge orders came from mining companies like Riot Blockchain (RIOT), which bought more than 31,000 new machines this year, Core Scientific bought 59,000 machines from Bitmain in one order, and Marathon Patent Group (MARA), they Expand the mining fleet to more than 100,000 machines.
At this rate, mining will continue to be difficult to participate in throughout 2021.
