Bitcoin: ASIC Mining Rig Prices Fall to 2-Year Lows

Paigambar Mohan Raj
Source: Bitcoin.com

Bitcoin (BTC) mining rig, ASIC, is witnessing a massive fall in prices at the moment. As per reports from Hashrate Index, ASIC miners are seeing their prices drop by 86.82%. These rigs generate at least one terahash per 38 joules of energy. Their prices peaked on May 7, 2021, at $119.25 per terahash. The prices are down to $15.71 per terahash as of Dec. 25. Bitmain’s Antminer S19 and MicroBTC’s Whatsminer M30s are some of the rigs in this category. Many speculated that this is a sign of the current bear market coming to an end.

Efficient Bitcoin miners aside, mid-tier machines are also seeing their prices fall. Data indicated that the cost of these machines has dropped 89.36%. Prices reached a peak of $96.24 on May 7, 2021, but dropped to $10.23 at press time.

Lastly, machines that are the least energy-efficient and consume more than 68 Joules per TH are priced at $4.72, a 91% decrease from their high of $52.85. It was last priced similarly on or about November 5, 2020.

Why is the price of Bitcoin mining rigs falling?

Large mining firms that have battled to remain profitable during the bear market are mostly to blame for the price decline. To stay afloat, several mining businesses are turning to Chapter 11 bankruptcy, taking on loans, or liquidating their Bitcoin holdings and assets. Core Scientific, Marathon Digital, Riot Blockchain, Bitfarms, and Argo Blockchain are a few companies that have taken that route.

However, some eager purchasers have responded to the sharp price decline. Numerous mining operations in Russia, like BitRiver, may profit from the comparatively low cost of power.

According to Nico Smid of Digital Mining Solutions, the price of ASIC miners hit a low on May 11, 2020, during the previous Bitcoin halving cycle, and then sharply increased immediately after. The next Bitcoin halving cycle, anticipated to occur on April 20, 2024, might see something similar.

At press time, Bitcoin (BTC) was trading at $16,853.37, up by 0.1% in the last 24 hours.