Crackdown on Chinese miners drives up supply of used ASIC devices

The volume of used mining devices put up for sale has surged amid the Chinese authorities’ decision to halt operations of key miners. This was reported by The Block.

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As of writing Coin Metrics estimates the Bitcoin network hashrate at 90 EH/s, BitInfoCharts — about 97.5 EH/s. At the time the attacks began by Chinese authorities on miners, the figure exceeded 155 EH/s.

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The active decline in Bitcoin’s hashrate occurred after Inner Mongolia authorities Xinjiang and Sichuan joined the initiative. They are among the main regions for mining the first cryptocurrency.

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The vice president of Foundry, Kevin Zhang, estimated 70% of the lost hashrate as a result of Chinese authorities’ actions. Specialist predicted that by the end of June the figure would rise to 90%.

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According to the publication’s estimates, the loss of at least 50 EH/s could be offset by the operation of no fewer than 500,000 of the latest AntMiner S19 Pro or 3.5 million AntMiner S9s. Some of the unused equipment has already been sent to Kazakhstan, some experts forecast a shift in leading positions to the United States.

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The situation forced the ASIC manufacturer Bitmain to suspend sales of equipment. It did not affect contracted deliveries.

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The mining company managers notified clients that the decision was driven by a flood of used equipment. Bitmain declined to pressure the market, which is struggling to liquidate stock.

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According to The Block, dealer prices have fallen by 30% compared with levels observed before the attacks on miners.

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The vice president of Foundry stressed that most of the equipment installed at Chinese facilities is not suitable for operation abroad due to non-compliance with technical standards.

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5) Before resellers and opportunists get way too ahead of themselves for scooping up discounted electrical equipment, they should consider that most of the gear wont be up to code for established Western countries (not UL Listed or CE Certified, aluminum transformers vs copper)

— Kevin Zhang (@SinoCrypto) June 23, 2021

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As reported by Glassnode, they estimated 4–5 thousand BTC in daily miner sales in the previous two weeks.

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Earlier, mining hardware maker Canaan Creative announced the launch of its first own Bitcoin mining operation.

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