Bitmain Discontinues Sales of Bitcoin Mining Gear Amid Chinese Crackdown
Leading Bitcoin mining rig manufacturer Bitmain Technologies Ltd has reportedly stopped the sales of mining rigs following the Chinese crackdown on crypto mining.
Influx Of Secondhand Sellers Causes Bitmain To Stop Sales
The Beijing mining giant decided to halt sales of machines for spot delivery due to the high rate of secondhand Bitcoin miners selling mining machines in China. There's been a 75% plunge in prices of top-tier mining rigs in China due to the influx of miners in the local market, Bloomberg reports. This comes amid a wider crackdown on the crypto market in China.
Bitmain has not revealed when it plans to resume sales of its mining rigs.
The Bitcoin network hash rate, a measure of its computational horsepower, has also declined as many Bitcoin miners in China leave the country.
According to Bitinfocharts, the Bitcoin network's total hash rate has already fallen by more than 40% in less than 30 days. The hash rate is currently 91.2 exahashes per second (EH/s), close to half of its 171.4 EH/s high posted less than six weeks ago.
China’s Crackdown On Crypto Mining
Last month, the State Council of China, one of the highest government bodies in the country, declared that municipal authorities crackdown on Bitcoin mining and trading activities.
Ever since then, Chinese authorities have been under pressure to reduce the energy intensity of Bitcoin mining. This has led to the targeting and shutting down of Bitcoin mining plants.
Inner Mongolia, Xinjiang, Yunnan, and Qinghai regions have already ordered mining operations to cease. The most recent province to carry out this order is Sichuan. No less than 26 mines were closed last week, sending miners packing left and right.
These attempts by China to end cryptocurrency mining in different provinces across the country have forced miners to seek shelter in neighboring countries like Kazakhstan.
The US has also emerged as a prime destination for displaced Chinese crypto miners. Financial institutions in China are also being used by the State to stifle the crypto sector.
Last month authorities in China also ordered the country’s financial institutions to stop facilitating crypto transactions. This saw Bitcoin and other cryptocurrencies fall.
However, despite these measures to clamp down Bitcoin trading and investment in China, the country remains a global hub for the creation of Bitcoin and accounts for up to 75% of the world’s mining.