Heyday of Bitcoin Mining Rigs Business at China’s Huaqiangbei is Over Amid Crypto Market Carnage
Bitcoin price slumped to a 13-month low of about $4,300 on Wednesday, making mining the world’s leading digital currency an unprofitable business. A lot of mall miners, mining rigs dealers and mining hosts in China have to make a career change, with some having a side job to sell shoes and silk stockings on WeChat , a popular social platform, according to local media outlet.
At Huaqiangbei, which is a popular electronics hub in Shenzhen, the heyday of global buyers snapping up mining rigs is over.
“For the sake of saving costs, our shop on the fifth floor will be closed after selling off this batch of second-hand devices,” said Li Na, a vendor at the electronics market .
She indicated that many peers have subleased mining shops to others or resumed trading of computer accessories as they find it extremely difficult to sell these machines in the enduring bear market.
“Although Bitmain 7nm Antminer S15 and T15 have achieved a higher hashrate for the same amount of electricity,their prices remain volatile since launch,” said Li Na. “ Buyers are still waiting to see if prices will continue to go down. Hence brand-new equipment is a tough sell here.”
She added that “ we still reclaim a large amount of old mining rigs, mainly Antminer S9. News of crypto miners selling off mining devices ‘by kilo’ is greatly exaggerated”.
Bitmain, the world’s largest bitcoin mining hardware manufacturer, is also feeling mounting pressure of the decreasing demand for mining machines .The company’s Head of Miner Sales , Fan Xiaojun, admitted that “New rigs are difficult to sell.”
In addition, large mining farms are also struggling to survive, one step away from selling off mining rigs and shutting down. “Mining farms with a certain cash flow level will switch off rather than selling off their machines to limit losses . But the cryptocurrency sell-off has now forced small miners to resell rigs and sell off cryptocurrencies to pay the electricity bill.” said a mining farm operator in Xinjiang. He claimed some mining farms have been closed in Xinjiang due to illegal electricity use.
According to the latest estimates of Beijing-based F2Pool, the world’s sixth bitcoin mining pool, at least four models of bitcoin mining machines, including Antminer S7, Antminer T9, and Avalon A741,,have reached their “shutdown price”.