Cryptocurrency mining machines are reportedly being sold in China according to their weight as miners who haven’t been able to make a profit are seemingly getting rid of their old models to get some of their investment back.
According to local news outlet 8BTC, old ASIC machines like the Antminer S7, the Antminer T9, and the Avalon A741, have reached what’s being called a “shutdown price,” a price in which miners aren’t able to cover the energy costs associated with running these machines.
As such, they’re being sold for scrap metal and other parts. Per local reports, the miners are being sold for as little as one-twentieth of their original value. While large mining operations are still running, small and medium-sized ones in China’s Xinjiang and Inner Mongolia are struggling.
Per the local news outlet, some miners are being sold for anywhere between $15 and $100. Initially, Antminer T9’s – which are currently being sold for little over $200 on Bitmain’s website – were going for over $1,500.
A video posted to microblogging website Twitter by the Managing Director of Danhua Capital, Dovey Wan, shows how the machines are being handled to then be sold:
BRUTAL: this is what’s happening now in a China based mining site .... 😨😨 pic.twitter.com/gcN4lVTyBt— Dovey Wan 🦖 (@DoveyWan) November 20, 2018
While some claim the video was taken months ago, at a time in which floods in Sichuan affected cryptocurrency mining operations , the founder of F2Pool and Bixin Pool are said to have confirmed the video’s authenticity.
Notably, at the time of the floods Jiang Zhuoer, the owner of the prominent mining pool BTC.Top, clarified these had “little impact on bitcoin mining farms.” In a subsequent tweet Wan revealed that in China electricity costs are currently up for cryptocurrency miners, as some rely on hydroelectric dams.
Another factor is electricity cost, current season in China is dry season so many hydro based mining power facing peak cost of the year, which makes it even worse. Also some top mining pool owners were saying they were operating at loss for last 3 months which is rare since 2014— Dovey Wan 🦖 (@DoveyWan) November 20, 2018
Miners haven’t been able to make a profit as while energy costs are up, cryptocurrency prices are down. Bitcoin, the flagship cryptocurrency, saw its price drop from about $13,000 in January to roughly $4,500 at press time.
Per 8BTC, the term “miners sold by kilo” started trending on China’s top search engine Baidu after the founder of F2Pool tweeted out a picture revealing that some machines were being sold according to their weight.
In a Reddit thread where the above video was shared, some users discussed how the market’s downtrend has been affecting cryptocurrency miners. One, in particular, revealed he still uses his miner as “it’s cold and mining is cheaper than running a heater.”