Bitcoin Miners Buy Used Hardware And Focus On Hydro Energy
According to recent report by CoinDesk, Chinese miners are purchasing used mining equipment and are cutting deals with mining farms and hydroelectric plants, thinking abundant water this summer will make their businesses profitable again.
The best option of hydro energy is southwestern provinces of Sichuan and Yunnan in China. Hashage, a company based in the city of Chengdu in Sichuan that operates six mining farms with a supply of about 200,000 slots for machines, for example, said the electricity cost in Sichuan during the summer – which may vary from hydropower plants – is usually around 0.25 yuan, or $0.037, per kilowatt hour (kWh) for hosting equipment for miners.
Hashage CEO Xun Zheng announced that individual miners and larger mining farms with a total demand of more than 1 million slots for deploying mining chips are currently negotiating the deals.
“The interest is definitely there,” Zheng said, adding most of the miners that have shown enthusiasm are from China’s Inner Mongolia and Xinjiang provinces, where they operate mining farms using fossil power plants. The electricity costs there are usually around 0.35 yuan, or $0.052, per 1 kWh.
He also confirmed that the market is growing for used AntMiners. You can buy it on the e-commerce marketplace Alibaba for $100 to $200 each.
Hashage is planning to deploy around 20,000 ASICs to mine on its own behalf, with second-hand machines bought on the market.
It is worth noting that total Bitcoin miners revenue this month is $195 million which is 10% lower than last month, however, net profit went up.
As a reminder, Ebang, the third-largest cryptocurrency mining hardware manufacturer, is reportedly eyeing a market turnaround this year, as it’s set to produce 400,000 mining machines it expects to sell. The company owns 9.2% of the cryptocurrency mining equipment market in terms of sales revenue.