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Secondhand Crypto Mining Machines Doubled Price for Short of Capacity in China

Crypto mining machines are under capacity in China after bitcoin surging price. Chinese mining machine manufacturers, including PandaMiner, Bitmain, Ebang, Canaan have sold out their products.

” Our main business is graphics  card mining machines, at present mining machines in our official network of has been fully sold out. I believe the surging price brings more buyers.”

On the official websites of the three manufacturers, the mainstream Ant Series, Avalon Series, and EBit Series mining machines have been sold out. Only Avalon1041 of Canaan is available for reserving, but the fastest delivery date is in August.

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In addition to the rapid surge in the market, another important reason is that the insufficiency of upstream chip supply. Due to political factors, the shortage of upstream chip supply caused the production capacity of miners to be tight, resulting in under-capacity of mining machines.

Due to the insufficient supply of mining machines, secondhand crypto mining machines doubled in price in Huaqiang North Commercial Area (one of the largest crypto mining machine market in China).

Bottleneck in capacity

In March, most mining machine manufacturers did not figure that bitcoin to surge from $3,800 to $10,000 in less than three months. Before that, Ebang even reduced its production of mining machines to 400,000 units in 2019, which was a significant reduction compared with its half-year sales of 390,000 units. Now, in the face of the booming demand for mining machines brought about by the sharp rise in Bitcoin, mining machine manufacturers with limited capacity feel powerless and frustrated.

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“At present, the inventory of the whole mining machine industry is declining, while the demand is rising. Now the situation seems to return to the third and fourth quarters of 2017, when the market demand for mining machine is three times the supply. The earliest delivery date of Canaan’s new miner has been scheduled in October. Even the latest ant miner S9 SE and S9k have delayed its delivery date to August.”

Said by Steven Mosher, head of global sales and marketing of Canaan. Mining machine manufacturer belongs to the manufacturing industry, so it requires a period of time to prepare materials and expand production lines. Last year’s sustained downturn has caused some miners a lot of losses. In 2019, some miners are more conservative and have strict capacity control, but the market is rising too fast, resulting in short-term shortage of supply.

Insufficient supply of chips is the key factor for the under-capacity of mining machines, including Samsung, TSMC and other chip manufacturers were restricted by political factors, the original share of the crypto miner capacity was squeezed out. Under-capacity occurs from the source of the manufacturing supply chain.

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