Outdated bitcoin mining equipment in the United States is set to be sold to overseas buyers seeking to profit from mining in regions with cheaper electricity. Industry experts revealed this in an interview with Bloomberg.
Taras Kulik, CEO of mining equipment retailer SunnySide Digital, stated that this trend is driven by the upcoming halving. He noted that while older devices can still be profitable, it is “unlikely” in the US due to high electricity rates.
Unused rigs will be refurbished and then sold to entrepreneurs in Ethiopia, Tanzania, Paraguay, and Uruguay.
According to Ethan Vera, COO of mining company Luxor, around 600,000 Antminer S19 units will be shipped from the US to Africa and South America.
The company representative noted that buyers are waiting for the halving to purchase equipment at lower prices. In March 2022, used S19s were priced at approximately $7,000, but they are now valued at $427, Vera clarified.
“While S19 miners and similar models will become unprofitable to operate in the US after the reward is halved, they can still yield decent profits and extend their lifespan in some parts of Africa,” said Hashlabs Mining CEO Jaran Mellerud.
Private miner Nuo Xu, who operates two data centers in Texas, emphasized that the average energy cost in the United States reaches 7 cents per kWh. In Ethiopia, it ranges from 3 to 6 cents.
Earlier, American mining company Marathon Digital announced a global expansion and did not rule out entering the African market.
In November 2023, the firm began bitcoin mining in Paraguay, partnering with Penguin Infrastructure Holding to establish a data center.
In February 2024, Bloomberg reported on the relocation of Chinese miners to Ethiopia. Local bitcoin miners are also moving to Iran and Kazakhstan.