Bitmain suspends new orders as the supply of “old miners” explodes

By postponing sales, Bitmain aims to help miners exit the industry to get better prices on mining equipment sales.

Chinese mining giant Bitmain is reportedly trying to adjust to market conditions while local authorities crack down on cryptocurrency mining.

According to a report by Chinese news agency Sina Finance on Wednesday, Bitmain has halted global spot sales of its new Bitcoin (BTC) mining rigs to avoid customer harm from massive sales in the secondary market.

By delaying the sale, Bitmain intends to help miners exit the industry, get better prices for mining equipment and protect the company from further price drops in the long term, Bloomberg reported. A Bitmain spokesman said the company would continue to support the sale of devices that are used to mine smaller altcoins. The rep did not specify when Bitmain expects to resume spot shipments worldwide.

Arthur Li, founder of the Bitmain-backed mining startup Sai Technology, highlighted the massive selling pressure on the leading Bitmain miners in the used market. Some of the top mining rigs from Bitmain and rival Whatsminer are currently selling for around 150 yuan ($ 23) per terahash per second, up from 600 yuan ($ 93) in April when Bitcoin hit an all-time high of over 64,000 US dollars.

The sharp drop in the price of Bitcoin ASIC miners was accompanied by a massive drop in the price of Nvidia GPUs, which are commonly used for mining cryptocurrencies. As previously reported, prices of some graphics cards in China fell as much as two-thirds on domestic e-commerce sites in June.

Bitmain is reportedly considering an offshore move. According to Chinese journalist Colin Wu, the company announced its full overseas move on Tuesday.

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