Market decline

Crypto Miners Sell Mining Devices ‘By The Kilo’ Amid Market Decline

Cryptocurrency mining operations in China would sell mining machines by weight, as opposed to unit price. The sale was reported by local Chinese crypto site 8BTC on Wednesday, November 21, in reference to the F2Pool cryptocurrency mining pool.

Cryptocurrency markets have seen a widespread decline throughout the past week, with Bitcoin (BTC) falling to $ 4,300 per coin.

The drop resulted in a similar drop in mining profitability and forced Chinese operators to sell their mining devices at a loss, according to 8BTC. The outlet reported that minors are sold “by the kilo”, citing an article by the founder of F2Pool on the Weibo microblogging platform.

Crypto miners are said to be particularly keen to sell older models, including Antminer S7, Antminer T9, and Avalon A741, as these have reached their ‘closing price’. According to local Chinese outlet Tencent News, revenues from mining are no longer sufficient to cover electricity and other associated costs.

The market collapse is said to have mainly affected small and medium-sized mining operations in China’s Xinjiang and Inner Mongolia regions. There, reports 8BTC, some mining machines are sold on the second-hand market for only 5% of their original value. A mining machine purchased at a price of up to 20,000 yuan ($ 2,885) a year ago would currently be sold for only 1,000 yuan ($ 144).

The price of Bitcoin has been steadily declining, along with the rest of the crypto market, since the Bitcoin Cash (BCH) hard fork network upgrade that took place on November 15. The update led cryptocurrency exchanges across the world to to suspend BCH trading and withdrawals.

Earlier this month, Bitcoin mining giant Bitmain announced plans to reach local mining farms in the coal-rich province of Xinjiang and deploy around 90,000 Antminer S9 devices in the region. Bitmain’s decision would be strategic in the “war for computing power” associated with the BCH hard fork.

At the time of going to press, the crypto markets have calmed down with most of the top ten cryptocurrencies posting only slight losses. BTC today fluctuated between $ 4,450 and $ 4,630.

In September, the CEO of F2Pool released an infographic indicating that if the price of Bitcoin reached a level below 36,792 Chinese yuan (around $ 5,376), mining the cryptocurrency with an Antminer T9 would become unprofitable. In the case of a Model S7 miner, the breakeven point was a significantly higher Bitcoin price of around 79,258 yuan (around $ 11,581).