Bitcoin miners’ prices slump to one-and-a-half-year low

One of the factors that influenced the price decline was the bankruptcy of Celsius Mining, along with its parent company Celsius Network

16.07.2022 - 07:30

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What’s new? Bitcoin mining equipment’s prices have fallen to December 2020 levels. According to Luxor Mining’s Hashrate Index service, the price of flagship ASIC miners, whose power efficiency ranges between 38 J/TH and above, has dropped to $41 per 1 TH of power. Bitmain’s Antminer S19 and S19 Pro are on sale for $20-23 per TH, CoinDesk reports. MicroBTC’s Whatsminer M30 line models are being sold in roughly the same price range.

What caused the drop in value? One of the negative factors was the bankruptcy of Celsius Mining along with its parent company Celsius Network. Over June, the cryptocurrency mining division auctioned off 11 000 rigs: 6 000 at $28/TH and 5 000 at $22/TH. Luxor chief operating officer Ethan Vera noted:

“With additional machines hitting the market, we expect prices to decrease $1-$2/TH across new-generation machines. There are a number of mining companies that will need to liquidate portion of their fleets, providing additional pressure on ASIC prices.”

At the end of June, Arcane Research analyst Jaran Mellerud noted that the reduction of profits from cryptocurrency mining could force companies to sell ASIC miners, which would bring down their prices, already at a year-and-a-half low, even further.

Amid the volatility of the cryptocurrency market, individuals and small cryptocurrency mining companies from Russia are actively selling off equipment to return funds invested in the business. The price of video cards dropped by another 10-15% compared to June when the mass sale began.

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