Bitmain Cuts Prices—Desperate Times Call for Desperate Measures

So, guess what? Bitmain, the big dog in Bitcoin mining hardware, is slashing prices like a coupon-clipping ninja. Yep, you heard that right! Reports say they’re cutting the costs of some of their Bitcoin ASIC models to levels that are almost shocking—like walking in on your grandma at a rave!

Mining Revenue Takes a Hit

Why the fire sale, you ask? Well, mining revenue is diving faster than that kid trying to skate for the first time. Plus, the inventory is piling up like it’s about to become a new form of modern art. And with the Bitcoin halving in April 2024 dropping the block reward to 3.125 BTC, miners are feeling the pinch, prompting a rush to renewable energy to keep those operational costs down.

Bitcoin Prices—The Rollercoaster Ride

Now, you’d think higher BTC prices would cushion the blow, but nope! 2025 decided to throw a curveball: after briefly flirting with a peak above $126,000 in October, Bitcoin’s price took a nosedive to around $80,000 by November. Yikes!

Insane Deals on Mining Gear

As for the hardware? The S19e XP Hydro and 3U S19 XP Hydro are being dished out for about $3 per TH/s in some factory sales. And the S19 XP+ Hydro? Well, it’s loitering around $4 per TH/s. Meanwhile, older models like the S21 Immersion are still kicking but hovering between $7 to $8 per TH/s. It’s like a tech flea market out there!

Scraping the Bottom of the Barrel

It turns out mining income per unit of hashpower has plummeted like a lead balloon, leading many operators to scramble for cheaper equipment or lower hosting rates. The price cuts are so deep that some previously junky deployments are looking like a solid investment again—provided power costs stay low and Bitcoin decides to get back in the game.

Fast Changes in the Secondhand Market

Used gear is flying off the shelves quicker than you can say “blockchain.” Resellers are lowering their prices to match the new factory cuts, triggering a landslide of cheaper bids and machines changing hands faster than a hot potato.

A Mixed Bag for Miners

Smaller operators are breathing a sigh of relief, while larger ones are watching the scene unfold like it’s the latest blockbuster. Reports indicate that demand is on the decline across the board, not just for Bitmain. Everyone’s adjusting their offers in reaction to the market, creating an excess of secondhand equipment.

Future Outlook—Will There be a Turnaround?

So, what does this all mean? Well, we might see a quicker turnover for the most efficient miners, while older rigs are sent to retirement homes or put up for resale. The hashprice metrics show revenue per TH/s is at a multi-year low, which means there’s not much room for recovery unless Bitcoin rises from the ashes or electricity costs hit the road.

Short-term, those cheaper new rigs could relieve some cash stress for crafty operators able to take advantage of favorable power rates. Long-term? Who knows! We might see some consolidation as the undercapitalized miners wave goodbye.