TL;DR Breakdown
- Bitmain goes public with the temporary suspension of mining rig sales.
- The company is also leaving china and looking to explore new markets overseas.
China’s most prominent cryptocurrency rig maker has announced its intentions to temporarily suspend the sales of spot mining equipment globally to relieve widespread panic liquidation of rigs induced by miners.
Bitmain to relieve mining pressure
According to a tweet by 8BTCnews, the world’s largest mine producer has publicized its intentions to momentarily halt the sales of spot rigs in a bid to relieve the massive sell pressure in China’s crypto mining space. Bitmain Technologies further added that the recent influx of pre-owned mining rigs into the market informed its decision.
By suspending the sales of its equipment, the company hopes to help miners fleeing the crypto meltdown in China get reasonable value on the liquidation of their assets. In the same vein, Bitmain also benefits if supply is reduced in the long run.
Since the start of April 2021, the prices of Bitmain mining rigs have plummeted by about 75 % in the Chinese market.
On Tuesday, 22nd of June 2020, there was a massive sell-off of BTC in China, and the resultant effect plunged the asset’s price below $30,000. Furthermore, the domino effect of the sell-offs nosedived the prices of other crypto assets.
Bitmain exits China, move overseas
According to 8BTCnews on Twitter, the company also announced its intended move overseas. However, the Chinese rig maker has identified clearly that only some middle-cadre and senior members of its staff will be moving out to a new overseas market.
In the wake of the ban imposed on cryptocurrency miners by Chinese authorities, the sector is gradually depleting, and miners are migrating to other mining-friendly countries like Canada and Kazakhstan.
The Chinese government has argued that the ban on Bitcoin mining activities was birthed out of the need to reduce carbon emissions generated by the country’s industries.
Kazakhstan is on the path to becoming the world’s largest cryptocurrency mining hub. The country has a mining farm built by ASIC maker – Canaan – and offers affordable power.
