Time to Leave? A Visit to A Miniature of Crypto World-World’s Largest Distribution Center of Mining Rigs
An AntMiner S9 is now sold at the price of 14,000 Chinese Yuan down from a high of 30,000 yuan three months ago in Huaqiang North, dubbed the country’s No. 1 electronics street and world’s largest distribution center of cryptocurrency mining machines, according to a report by a Chinese financial news site.
Sensitive to the bears and bulls of crypto market, the price of crypto mining machines is renewed everyday. Mining machine retailers who made a full bucket by selling coveted mining machines before the Chinese New Year are now in an awkward situation – previously high-priced mining machines are on clearance sales.
A computer shop owner who also does mining machine business on Huaqiang North in Shenzhen, said,
“there’s few goods in stock before the Chinese New Year, many are future contracts with the requirement of full payment”
“But now an AntMiner S9 is selling for about 14,000 yuan, down from a high of 30,000 yuan three months ago. I have to bear the loss of 5,000 yuan per unit, for S9 stocks I have already ordered were priced 19,000 yuan per unit at that time.”
Several retailers said their purchasing price of an AntMiner S9 is around 20,000 yuan, while their recent actual selling price jumps to 14,500 yuan, and may be bargained to a low of 13,900 yuan. Surely, these shop owners there once had amazing cash bonanza from touting crypto mining machines, they have to bear the risks of loss.
“In this context, there are still many new faces doing mining machine business here. Some of them used to sell electronic parts, some used to develop apps, and now they are all here to sell mining machines.” a shop owner said.
Even though the price is elusive, they would prepare a few stocks, as they know the demand has not yet dying out, it’s a market thing.
These shops in Huaqiang North are also hosting service providers for mining machines. A shop assistant claimed that they are running a mining farm which could contain tens of thousands of mining machines, no hosting fees are required, but only electric charge at 0.65 yuan/kWh. It is estimated that the hosting costs for a AntMiner S9 are 680 yuan a month.
As an upstream industry, mining machines retailers are not leaving. Is it time for crypto investors to quit the game?