Foundry says the ASIC-miner market is in a deflationary spiral.

As the ASIC-miner market has stalled in a deflationary spiral, there is an obvious gap between the prices sellers are asking and what buyers are willing to pay. This is evidenced by data from Foundry.

Sign up to receive regular updates and data on the ASIC market from FoundryX: https://t.co/fbHsjCcxoE https://t.co/M5e3VZEJqZ

— Foundry (@FoundryServices) October 20, 2022

For latest-generation devices such as the Bitmain Antminer S19J Pro, buyers are prepared to pay $15 per TH or less. Most sellers are asking $20 per TH.

“The market is somewhat blocked, as many miners face a cash crunch, and hosting capacity remains constrained. Nevertheless, mid‑market deals around $18/TH are being done,” the company noted.

In recent months, cryptocurrency miners have faced falling revenues as Bitcoin tumbled and mining difficulty rose. Against this backdrop, prices for ASIC miners have fallen about 80% from their peak, according to Foundry.

In September the industry faced the first major bankruptcy — hosting provider Compute North filed for bankruptcy. Some companies, such as Stronghold or Argo Blockchain, are trimming costs and selling equipment.

Other firms are using the bear market to acquire assets, such as CleanSpark and Crusoe.

Grayscale Investments, affiliated with Foundry, launched a structure for investing in mining equipment. The firm saw an opportunity to buy Bitcoin miners at significantly reduced prices amid crypto-winter.

“We receive several inquiries per week from institutional investors looking to acquire distressed mining assets,” confirmed Foundry.

In August and September miners sold fewer bitcoins than they mined for the first time since May, according to Hashrate Index.

Read ForkLog’s bitcoin news on our Telegram — cryptocurrency news, rates and analytics.