Insight into the Bitcoin Mining Market from Industry Leaders’ Voices in Chengdu
It is expected that the network hashrate would increase in the following weeks as a large number of Bitmain’s high-powered S19 series has arrived at mining farms and will come online soon, according to several Chinese mining farm operators.
The S19 machines went on sale on March 23 and were sold out in minutes. The price of a 110T S19 Pro was RMB 20,770 yuan, and the price for S19 (95T) was RMB 15,495 yuan, with the delivery time scheduled for May 11 – May 20, 2020. The energy efficiency ratio of S19 Pro is advertised at a record-breaking 30 J/TH and S19 at 34.5 J/TH.
Its rival M30 series announced of the same period have been shipped out about a month earlier. At present, both the S19 and M30 machines are available only by futures order. According to Bitmain’s official website, the delivery time of S19 series has already been scheduled for September.
It was previously reported that Bitmain has made over $300 million in revenue in the first four months this year, indicating the company seemingly did well in miner sales despite the coronavirus outbreak and its in-house problems.
While industry leader told us that, bitcoin mining machine sales this year is not good as the bitcoin mining machine capacity this year is in fact limited with flat demand and low supply. Small miners are losing momentum to buy new machines, and mining hardware makers who have foreseen it are taking futures order to avoid overstock.
Mao Shixing, the co-founder of leading mining pool F2Pool, said at the Global Digital Mining Forum that the delay of the supply chain makes it impossible for mass production of new-generation mining rigs.
Liu Fei, CEO of Bixin mining, estimated that the demand for mining rigs this year is about a third of what it was last year, and the production capacity is only a fifth of the number last year.
“The mining circle is suffering from big changes. It is those capitals who dare to buy (high-powered mining machines), small miners dare not,” said Sully Yu, an agent of Whatsminer, “big capitals are eyeing on the long-term return from bitcoin mining, and the mining activity is developing into a large-scale, intensive and refined industry. It will be unrealistic to expect a quick payback from mining like it used to.”
“With more institutions moving into mining and a possible slow bull, China’s dominance in bitcoin mining may be threatened.”
Sully Yu told 8btc that they have seen overseas orders (especially those from North America and Europe) rise fast, which is estimated to have accounted for 40% of their total orders. It somewhat echoes with some industry insiders’ take on bitcoin mining shift from China to North America.