Cryptocurrency : Bitmain suspends sale of mining equipment after China’s onslaught against bitcoin

Key facts:

The company said that by paralyzing its sales, the demand for second-hand equipment will grow.

The mining equipment maker revealed that it will move its operations out of China.

Bitmain, the Chinese bitcoin mining equipment maker behind the Antminer brand, will temporarily halt its sales. His decision comes amid China’s crackdown on the mining industry.

There is no precise data, but according to a report by the Global Times, a media outlet edited by the Chinese state, it is estimated that eventually more than 90% of the computing power will be turned off that is generated in China to mine cryptocurrencies. This as a consequence of the country deciding to decisively combat and punish bitcoin mining.

Given this, Bitmain’s plan seems focused on supporting the migration of miners to other latitudes. By suspending the sale of your new equipment, demand will focus on second-hand which, are now held by miners looking to leave the country that is no longer bitcoin friendly.

Bitmain, which shares leadership with fellow manufacturers Canaan and MicroBT, is reacting to current market conditions. It has acknowledged, through a statement shared on WeChat, that there is an oversupply of used mining equipment, which has caused a sharp drop in prices.

Many miners have put their equipment up for sale as part of their plans to leave the country. So, to support the transition process the industry is going through, the manufacturer has decided to paralyze its sales worldwide, with the idea that miners can sell their used equipment.

After all, the measure will also allow the company to protect itself from falling mining machine prices, while the market digests excess supply.

In any case, everything seems to indicate that Bitmain has decided to reward the effort of its entire supply chain. In its statement, it notes that, in early 2021, the demand for Antminers in the market was strong, but the supply was tight.

However, at that time, the entire supply chain worked day and night, and finally together they increased the production capacity to meet the demand. And now, when the entire industry is struggling, the manufacturer seems to be appealing for solidarity. His idea is that the plaintiffs of mining equipment are inclined to buy second-hand equipment.

As CriptoNoticias has reported, Chinese Bitcoin (BTC) miners are moving their operations to other countries. Among them is the ASIC equipment manufacturer Canaan, which has made the decision to diversify, and therefore now mines the cryptocurrency in Kazakhstan, where it moved part of its operations.

Even Bitmain has also announced that it will leave China, as reported by Chinese news site 8BTC. The company revealed to the outlet that part of its staff will be moving abroad.

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