Crypto Mining Farms in China: Unoccupied Machine Seats, Bitmain S9 Miners Being Taken Over

Millions of old crypto mining machines are shut down and sold in batches; machine space is vacant in wet season, and the miners can only takeover S9 miners? Will network hashrate rise? Is it necessary to move the new mining machine to the hydropower-abundant area? Let’s see what the Chinese crypto miners think.

For more than a month, crypto mining space has been bombarded with “promotions”. Because bitcoin price is lower than the 15th / s level for a long time, the shutdown price of the old miner ($6400), considering the aftermarket and halving risk, many miners choose to sell and shut down during this period.

According to BTC.com‘s’ data, within 10 days after the dump on March 12, Bitcoin’s network hashrate fell to 95.2EH/s, 22% lower than the peak of network hashrate before the dump (at the beginning of March), which is equivalent to the decline of “mining disaster” at the end of 2018 (25%). Based on the first 15th / s miner, about 1.9 million mining machines will be shut down in those 10 days.

But for many old miners, it is a little comforting that most of the old mining machines have already covered the cost. According to Li Wenkai, a crypto miner, his S9 miner was purchased in succession last year, with purchase prices ranging from 1000 to 4000 Chinese yuan. After more than half a year of continuous operation, the overall cost is returned. For miners holding new mining machines, the shutdown price is lower and can survive in the extreme market, but if the currency price is lower than the “expected value” for as long as last month, it will extend its cycle again.

The 3.12 dump resulted in the shutdown of millions of mining machines, some of which were transferred to miners or mining farm owners with lower electricity prices. What is the buyer’s attitude? According to BTC.com, as of 15:00 on April 14, compared with the lowest point of 95.2EH/s, the whole network hashrate has risen to 115.4HE/s in the past seven days, up 21%. Hongyu, a crypto miner said that a considerable part of the old mining machinery purchased by him is the owner of mining farms with abundant hydropower. Mining farm owners buying S9 miners, not to buy the bottom, but being helpless.

Last year, the hydropower price in Sichuan in the wet season was generally 0.24-0.25 Chinese yuan/kWh, about 30% – 40% cheaper than last year’s thermal power price. However, last year, when the old miner S9 and others were able to operate on a large scale, the hydropower-abundant mining had already shown signs of excess. Now, the miners dump S9 one after another, can the owners of the mining successfully complete the investment promotion? Let’s see why, even if there is abundant hydropower, ordinary miners may not be able to run S9. According to the formula of shutdown currency price, based on the current network hashrate, difficulty and 0.23 yuan/kWh high flow electricity price, the shutdown price of S9 (13.50T) after halving is nearly $9400, that is to say, after halving, bitcoin needs to be increased by 27%.

This year, there are more abundant hydropower resources. Last year, there was a drought in Sichuan during the wet season, causing great losses to the miners and mining farm owners. By this year, it can be said that this year’s hydropower is abundant. From the perspective of policy, many mining farm owners conclude that this year is also better than last year.

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