Bitmain will increase the price of its Bitcoin mining equipment by 20%.

Key facts

:

  • In addition to the shortage of chips, there is an increase in the value of their components.

  • The ample supply from China’s exiled miners generated a drop in prices in previous months.

Bitmain, a company that manufactures ASIC (application-specific integrated circuit) mining equipment, announced a 20% hike in the price of its products. The increase would take place from 2022, and its main reason is the increase in components used to manufacture chips for bitcoin (BTC) mining equipment.

According to Jic News

, Taiwan Semiconductor Manufacturing Company (TSMC) is going to increase the prices of components used in the manufacture of integrated circuits, which are the essence of bitcoin mining equipment. This hike, which comes against a backdrop of a global chip shortage, will be implemented starting in the first quarter of next year.

There will be two scales in these increases. The first, for advanced processors such as 7 nanometer (nm) chips, will be 10%. Meanwhile, for 16 nm chips, a slightly more consolidated technology with several years of support, prices will rise between 10 and 20%.

This, the cited source claims, could have an effect on Bitmain’s AntMiner hardware. In fact, a post on the HashRate Index site

details that these Bitmain products already saw increases of between 10 and 17% during the month of July. The exception was the AntMiner S9 equipment, the cheapest on the list, whose value dropped by 3.2%. caida-recuperación-precio-equipos-mineria-bitcoin caida-recuperación-precio-equipos-mineria-bitcoin In the graph, you can see the sharp drop in bitcoin mining equipment prices between June and July and its recovery in August. Source: Hash Rate Index / hashrateindex.com

Another model whose price has risen is the S19j Pro 2022, whose orders for the first half of 2022 were quickly sold out in August, according to an official statement

from the company.

Other factors affecting bitcoin mining

Beyond

these issues linked purely to the mining industry, there are also other issues that can affect the demand for these equipment and, therefore, their price

.

One of them has to do with the prohibition of bitcoin mining.

The Chinese government’s crackdown on cryptocurrency mining in several of its provinces, which CryptoNews has reported on throughout the year. As a result of these measures, many miners were forced to leave the country to settle in other latitudes. This generated the sale of many equipment in secondary markets, even at lower prices than the official ones.

Also, and also related to the above, the fall in the value of the main cryptocurrency seems to have played a role as well. As the chart below reflects, the value of mining equipment rose in pace with the cryptocurrency, but also declined similarly.

However, the reports cited indicate that overselling from China has “cooled” and that the acquisition of mining equipment in the United States and Canada has contributed to the price rebound. These North American miners appear to be intent on taking over the limelight from the Chinese miners, at least until they manage to relocate and resume their activities.