Bitmain May Have Sold 100,000 Antminer S9 to Collect $15million Cash
Chinese crypto mining giant Bitmain’s hashrate drop may be a direct result of the selloff of over 100,000 S9 mining machines amid the recent bitcoin rally, according to a local crypto media Odaily.
As per the company’s hashrate disclosure updated on May 7, the hashrate of all Bitmain-owned hardware running the SHA265 algorithm (which the bitcoin and bitcoin cash networks are based on) had dropped to 237.29 quadrillion hashes per second (PH/s) from 1692.35PH/s a month ago in March.
That marks a notable 86% cutback in the industry giant’s bitcoin mining power. Assuming all the hashrate comes from the company’s most popular mining rig Antminer S9 which delivers a hashrate of 14 tera hashes per second (TH/s), Bitmain may have shut down more than 100,000 S9 which mine for itself.
But where this reduced hashrate or the mining rigs generating it has gone? The reply CoinDesk received from a Bitmain spokesperson read that
“It is [in the] natural course of the mining business where the hash rate owned by one body at one instant may be owned by someone else at another instant.”
The report suggests Bitmain may have sold its hash rate to cloud mining platform BitDeer that uses the company’s latest flagship Antminer models like S15, S17 and S11.
While people familiar with the matter told Odaily that the selloff of over 100,000 S9 might be the cause of the massive reduction in the company’s hash power.
Bitcoin has surged past $5,000 since April after four-month sluggish. “At this very moment, Bitmain posted a large sell order – over 100,000 S9. It’s crazy that the deal was completed in a very short time. The bitcoin rally seems to have instilled great confidence to miners.” A man involved in the deal said.
The huge deal even amazed some seasoned miners. “(Mining rigs in) several mining farms have been sold out, together with those second-hand machines, there were also many brand new hardware.”
“An S9 was sold at around 1,000 yuan ($150),” another industry insider added, “but now you have to pay 500 yuan ($75) more as they bid the price a little up. Offering such a low price, Bitmain must be in need for cash.”
As the company has rolled out more powerful hardware, it’s time to phase out their old miners to the second-hand markets. If Bitmain did take the advantage of recent bitcoin rally to sell off over 100,000 units of S9 miners, it would pocket in more than 100 million yuan (roughly $15 million), in which way, inventory was reduced and meanwhile cash flow was increased.