Bitcoin miner prices will continue to fall, predicts the F2Pool boss
The price of cryptocurrency mining hardware is likely to continue to fall in the near future in the middle of the current cryptocurrency winter, according to a leader at the large mining pool for Bitcoin (BTC) F2Pool.
F2Pool supports 14.3% of the BTC network, and is one of the world’s largest Bitcoin mining pools. On Tuesday, F2Pool released its latest update of the mining industry.
Focusing on BTC mining results in June 2022, F2Pool’s report noted that the majority of Bitcoin mining companies such as Core Scientific have chosen to sell their self-extracted Bitcoin recently.
Bitfarms, a large Canadian BTC mining company, sold 3,000 Bitcoin, or nearly 50% of its entire BTC property, for $ 62 million to reduce its credit facility in June.
“I have studied almost 10 listed industrial miners and found that they all very honestly tell everyone that they sell self-extracted Bitcoins,” wrote Lisa Liu, F2Pool’s director of global business development. She added that the income is used to finance operating expenses and to increase capital, as well as to reduce obligations under equipment and construction loan agreements.
Liu went on to say that only a few listed industrial miners claimed they would stick to their long-standing HODL strategy. They included companies like Marathon, Hut 8 and Hive Blockchain Technologies. “Surprisingly, Hive in particular does not have significant debt, nor does it have equipment financing for ASIC and GPU equipment,” she added.
The manager also mentioned that the price of application-specific integrated circuits (ASIC) miners has fallen sharply in recent months. At the beginning of June, the prices of top- and middle-level ASIC miners should have fallen by 70% from all-time highs in the range of $ 10,000- $ 18,000.
At the time of writing, Bitmain’s flagship miner is selling Antminer S19 Pro on Amazon in the range of $ 4,000- $ 7,000 for used devices. A brand new device apparently still sells for more than $ 11,000.
ASIC prices will continue to fall further, which could trigger many new miners to quit mining, Liu predicted, saying:
“I think ASIC prices will continue to fall, even though they have already fallen rapidly since reaching the top. If equipment owners cannot secure power and capacity at a competitive price level, many beginners who jumped on the hash train last year are likely to be thrown off. ยป
Liu stressed that such a situation would be the “worst case scenario” as F2Pool wants to see “every miner go through this cold winter.”
Related: Crypto Miners in Texas Shut Down as State Experiences Extreme Heatwave
From mid-July, Bitcoin mining revenues fell nearly 80% over a nine-month period, reaching a record high of $ 74.4 million in October 2021. The sharp decline triggered a massive drop in the price of graphics processing units, which finally came to an end. cheaper after the global pandemic-caused chip shortage.
