Bitmain suspends sale of mining equipment after China’s onslaught against bitcoin

Key facts:
  • The company said that, by paralyzing its sales, the demand for second-hand equipment will grow.

  • The mining equipment manufacturer revealed that it will move its operations out of China.

Bitmain, the Chinese manufacturer of bitcoin mining equipment behind the Antminer brand, will temporarily stop its sales. His decision comes amid China’s crackdown on the mining industry.

No precise data are available, but according to a report by the Chinese state-edited Global Times, it is estimated that more than 90% of the computing power will eventually be turned off which is generated in China to mine cryptocurrencies. This as a consequence of the country deciding to resolutely combat and punish bitcoin mining.

Given this, Bitmain’s plan seems focused on supporting the migration of miners to other latitudes. By suspending the sale of your new equipment, demand will focus on second-hand that, they are now in the hands of miners looking to leave the country that is no longer bitcoin-friendly.

Bitmain, which shares leadership with fellow manufacturers Canaan and MicroBT, is reacting to current market conditions. Has recognized, through a statement shared on WeChat, that there is oversupply of used mining equipmentwhich has caused a sharp drop in prices.

Many miners have put their equipment up for sale as part of their plans to leave the country. So … , to support the transition process that the industry is going through, the manufacturer has decided to paralyze its sales worldwide, with the idea that miners can sell their used equipment.

After all, the move will also allow the company to protect itself from falling prices of mining machines, while the market digests the oversupply.

In any case, everything seems to indicate that Bitmain has decided to repay the effort of its entire supply chain. In its statement, it points out that, at the beginning of 2021, the demand for Antminers in the market was strong, but the supply was scarce.

However, at that time, the entire supply chain worked day and night, and finally together they increased production capacity to meet demand. And now, when the entire industry is facing difficulties, the manufacturer seems to be appealing for solidarity. His idea is that mining equipment seekers will be inclined to buy second-hand ones.

As Crypto News has reported, Chinese Bitcoin (BTC) miners are moving their operations to other countries. Among them is equipment manufacturer ASIC Canaan, which has made the decision to diversify, and therefore now extracts the cryptocurrency in Kazakhstan, where it moved part of its operations.

Even Bitmain has also announced that it will leave China, as reported the Chinese news site 8BTC. The company revealed to the media that part of its staff will move abroad.

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