Avalon

Bitcoin

The recent rally in Bitcoin's market value has had a significant impact on the prices of the latest mining <a href="https://ultramining.com/hardware/" rel="noopener noreferrer nofollow">hardware</a>. Over the past few months, as <a href="https://ultramining.com/news/en/impending-bitcoin-halving-may-trigger-major-hashrate-decline-say-experts/" rel="noopener noreferrer nofollow">Bitcoin's price</a> soared from $27,000 to $45,000, an increase of over 60%, the cost of <a href="https://ultramining.com/news/en/immersion-cooling-transforms-chinas-crypto-mining-landscape/" rel="noopener noreferrer nofollow">mining equipment</a> has followed suit, according to <a href="https://theminermag.com/news/2024-01-03/bitcoin-mining-hardware-miner-rally/" rel="noopener noreferrer nofollow">TheMinerMag</a>.
In October and early November, several public bitcoin <a href="https://ultramining.com/news/en/blockstream-aims-for-bitcoin-profit-with-mining-rig-investment-ahead-of-2024-halving/" rel="noopener noreferrer nofollow">mining companies</a> placed preorders for <a href="https://ultramining.com/en/manufacturers/bitmain/" rel="noopener noreferrer nofollow">Bitmain</a>'s <a href="https://ultramining.com/en/hardware/antminer-s21-200-ths/" rel="noopener noreferrer nofollow">Antminer S21</a>, a highly efficient miner with 17.5 J/TH, priced at $14/TH/s. However, recent observations by TheMinerMag from Chinese miner brokers show that the January batch of the S21 is now being quoted at about $22/TH/s. This represents a 57% premium compared to three months ago.
The Antminer S19K Pro, Bitmain's slightly older model with 23 J/TH efficiency, is also experiencing a price hike. Its January batch is currently offered at around $15/TH/s, up from approximately $12/TH/s in early November.
Data from <a href="https://ultramining.com/news/en/luxor-innovates-with-extended-contracts-and-daily-settlements-for-enhanced-bitcoin-mining/" rel="noopener noreferrer nofollow">Luxor</a>’s ASIC trading desk indicates that the rally is affecting not just the USD pricing but also the BTC pricing of ASIC rigs. The cost for S21, for instance, has risen from 350 SAT/TH/s in early October to 550 SAT/TH/s currently.
In response to the impending Bitcoin <a href="https://ultramining.com/news/en/heat-waves-and-halving-bitcoin-miners-cash-in-amid-rising-prices/" rel="noopener noreferrer nofollow">halving</a> and to stay competitive, public mining companies have committed over $600 million in the past month to acquire the latest equipment. This ongoing "arms race" in mining technology has led to higher costs for latecomers. Pennsylvania-based <a href="https://ultramining.com/news/en/stronghold-digital-mining-hits-3-0-eh-s-hash-rate-milestone/" rel="noopener noreferrer nofollow">Stronghold</a> Digital Mining, for example, recently purchased 0.6 EH/s of <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">bitcoin miners</a> with an average efficiency of 25 J/TH for $8.5 million, equivalent to $14.2/TH/s. This price is comparable to what other companies paid three months ago for more efficient S21 miners.
Additionally, Stronghold has secured an option from <a href="https://ultramining.com/news/en/canaan-s-revenue-drops-by-72/" rel="noopener noreferrer nofollow">Canaan</a> to purchase its newest <a href="https://ultramining.com/news/en/stronghold-invests-3m-in-bitcoin-mining-expansion/" rel="noopener noreferrer nofollow">Avalon</a> A1466 miners, with an efficiency of 21.5 J/TH, for $12/TH/s at any time this year. Canaan expects to ship the A1466 around the Bitcoin halving in April.
This trend highlights the dynamic and rapidly evolving nature of the Bitcoin <a href="https://ultramining.com/news/en/texas-residents-challenge-bitcoin-mining-industrys-impact-on-power-grid-and-communities/" rel="noopener noreferrer nofollow">mining industry</a>, where technological advancements and market fluctuations can significantly influence operational costs and investment strategies.

Bitcoin’s Surge Triggers Price Hike in Mining Hardware

Ultramining_Eng

Other articles published on Jan 4, 2024

While Bitcoin ETF Waits, XDC Index Sails Smoothly With European Regulation: A Boon for Institutio...

Top 5 DePIN Coins With 20x Potential: BUY These Before Bitcoin Halving 2024?

SEC’s Latest Move Revealed, Terraform Verdict Influences Ongoing Case Developments

Giant Whale Sold All of Its Rapidly Recovering Arbitrums (ARB) and Bought This Altcoin Instead!

ProBit Global and Solidus AI Tech Join Forces to Enhance AI

Visa Advances Web3 Strategy with Pilot for Customer Loyalty Solution

Join our free newsletter for daily crypto updates!