Bitmain is among the largest Bitcoin mining rig manufacturers in the world. Therefore, it holds a critically important position in the crypto sphere. In a recent tweet, Bitmain announced that it is further slashing the prices of Bitcoin mining rigs for consumers. However, the prices of mining rigs are already down by around 70% this year. This is mainly due to the distressing global crypto market condition. It was further contributed by the global energy crisis as well.
🗣 #BITMAIN is offering an #ANTMINER S19 Pro special discount for only $19/T! For bulk orders, please contact BITMAIN sales representative directly. Customers who have already purchased S19 Pro will be eligible for coupons. 🔗: https://t.co/a9TlaCNUph pic.twitter.com/CDxKBpxYUN
— BITMAIN (@BITMAINtech) September 20, 2022
Miners around the globe are suffering in the bear market as well. The price of Bitcoin has gone below $20K, after falling by over 60% this year. This has seriously impacted the revenues of miners. On the other hand, the operational cost of miners has increased significantly due to the surging energy prices. The Russian invasion of Ukraine and imposed sanctions drove up the prices of fuel and energy all over the world.
Bitmain Drops the Prices to $19/TH
According to its tweet, Bitmain has decreased the price of an Antminer S19 Pro 100 terahash (TH) model to $19/TH. With this recent price cut from Bitmain, these machines are now available at a 30% less price than that on the market. However, the company did not specify the earlier price of the machine. As per the terms and conditions, buyers can only buy 200 machines with a discount. This means that bulk buyers will have to buy the machine at over $45/TH.
The atmosphere in the mining sector has changed significantly since the last year’s bull market. In 2021, miners were advancing contracts and deals with Bitmain to increase their production and mining abilities. Due to the sky-high price of Bitcoin at that time, the demand for mining rigs was also peaking in the market.
However, with the arrival of the bear market, the demand for mining rigs has seen a massive decrease. At the start of this year, the average price of mining rigs was $68/TH. But the average price has come down to only $20.8/TH by September 20. This is why experts believe that the move of Bitmain will further cause deprecation in the rig market. Analysts estimate that around 250K-500K mining rigs are still sitting in their boxes across the US. Therefore, the sheer difference in supply and demand might seriously influence the rig market in the coming days.