World’s largest Bitcoin mining machine maker Bitmain suspends sales as miners flee China
- Bitmain, the largest mining rig maker, has decided to stop sales of its machines temporarily.
- The decision comes after China has recently banned Bitcoin mining, causing miners to cease operations in the country.
- The Chinese firm is shielding itself from falling prices of mining rigs.
China’s largest maker of cryptocurrency mining machines, Bitmain, announced that it had halted the sales of the products in the spot market following Beijing’s ban on Bitcoin mining.
Chinese miners rush to sell mining machines
Cryptocurrency prices recently tumbled as the Chinese government decided to crack down on Bitcoin mining in the country. Bitmain has suspended sales of its products to help ease selling pressure following the new rules.
In late May, China’s State Council decided to halt Bitcoin trading and mining operations in the country, citing financial risks.
Since the ban, Chinese miners have been looking for ways to exit the business or move their operations overseas. Some of them are even selling machines, leading to a steep drop in the Bitcoin hashrate.
Bitmain said in a statement:
“Overseas mining sites are not built overnight, and selling pressure is huge in the secondary market.”
The mining machine maker cited that its move to suspend selling its Antminer machines globally was to “help smooth transition of the industry.”
The world’s biggest maker of Bitcoin mining machines noted that the cost of top-tier rigs plunged by about 75% since April. By halting its sales, miners looking to exit the industry can get better prices for their machines.
Bitmain could ultimately benefit from the reduced supply of mining machines in the market in the long run, which could inflate prices. The company looks at delaying further sales to shield itself and its clients from steeper drops in the prices of mining rigs.
The mining firm stated that it would continue to sell gear for future delivery of devices used to mine smaller altcoins, although it is unclear when business will resume.
Beijing has taken a new level of its crackdown on digital assets this time. The Chinese government completely banned Bitcoin mining, and its central bank ordered the country’s major financial institutions to stop facilitating crypto transactions, leading to a steep plunge in cryptocurrency prices.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
