ASIC miner prices lag behind the Bitcoin rally

Spot prices for Bitcoin mining equipment lag behind the gains in Bitcoin’s price. This rare situation arose due to a global shortage of hosting capacity after the mining ban in China, according to The Block.

In October the price of digital gold returned to the level of the all-time high reached in April. On November 10, the price of Bitcoin reached a new record around $69,000.

At the same time, the spot price of ASIC miners on the market had not recovered to April’s highs. According to Luxor pool data, devices of all generations are 15-20% below the levels reached then.

According to the publication, Chinese brokers are selling AntMiner S19 Pro by Bitmain at $100 per 1 TH/s. In April–May the price was about $120 per 1 TH/s.

“The continuing shortage of space to physically connect miners has caused prices to lag behind Bitcoin. Many companies have equipment in warehouses awaiting deployment. They prefer to invest in infrastructure and future orders rather than spot purchases,” explained Luxor co-founder and CEO Ethan Vera.

According to Zack Bradford, CEO of mining company CleanSpark, the balance of supply and demand was affected by the crackdown on the industry in China, triggering a flood of equipment onto the market. He added that price pressure was also exerted by sales of miners by companies that could not find hosting opportunities for the devices.

“I expect the trend to continue until the summer of 2022. The supply from these sellers is likely to continue supporting spot prices at a discount to Bitcoin’s price until access to the grid is balanced,” Bradford says.

Earlier, American mining companies faced delays in shipments of ordered equipment due to the global logistics crisis.