Chinese BTC Miners to Buy Used Equipment

They are expecting cheap energy boom in summer and some are sure BTC hashrate will grow significantly
05 March 2019   326

Chinese miners began to buy used mining equipment and enter into transactions with farm operators, relying on the fact that by the summer of hydropower plants have accumulated significant reserves. They are counting on extremely low fares, according to CoinDesk.

Thus, the most favorable tariffs are expected in the provinces of Sichuan and Yunnan in the south-west of the country. According to the operator of six farms Hashage, in the summer the price per kilowatt / hour should be about 0.25 yuan ($ 0.037).

CEO Hashage Xiong Cheng said that individual miners and major players have already expressed their willingness to place more than 1 million devices. In this case, the first are ready to place from 1000 to 3000 miners, and the second up to tens of thousands.

Note that the most interest is shown by businessmen from the provinces of Inner Mongolia and Xinjiang, where the price per kilowatt / hour is 0.35 yuan ($ 0.052).

At the same time, Cheng confirmed that the market for used miners is growing in China. The used model Antminer S9, for example, is traded in the range of $ 100 to $ 200. Some alternative sellers offer allegedly new S9 for $ 300, although on the official site Bitmain a piece of equipment still costs $ 450.

Representatives of the mining pool Bixin called the Antminer S9 a kind of AK-47 machine, because the model shows the best balance of performance and cost of maintenance in the current environment.

Hashage also intends to buy and place 20 thousand used ASIC-devices. Cheng is sure that bitcoin hash rate will grow significantly by summer. At the moment, according to Blockchain.com, it is 41.3 EH/s.

Total income of bitcoin miners in February amounted to $ 195 million, having sunk by 10% compared with the previous month and reaching a 19-month minimum. Nevertheless, gross margin showed growth since the beginning of 2019, which had a positive effect on the net profit of miners.

Mining Ban in China Won't Affect Bitmain & Canaan

This is said by the companies themself; also, Bitmain and Canaan did not indicate whether they intend to move the business abroad
11 April 2019   201

The prospect of a ban on mining in China will not have an impact on the operating activities of mining giants Bitmain and Canaan in the short term. This was stated by representatives of the press services of companies, 8btc reports.

At the same time, Bitmain and Canaan did not indicate whether they intend to move the business abroad, if the mining ban is set at the legislative level.

Note that China currently holds a dominant position in mining Bitcoin and Ethereum.

According to local cryptoexperts, mining equipment manufacturers will exist as long as Bitcoin has value.

Earlier in April, the National Development and Reform Commission of China issued a bill that called mining an “undesirable industry” and proposed banning it.

So far, the initiative has no legal force. Public discussion of the bill will last until May 7.