Bloomberg: A large number of old model mining machines in the U.S. are facing elimination due to the "Bitcoin halving," with some being refurbished for sale to overseas low-cost mining companies
ChainCatcher news, according to Bloomberg, as the Bitcoin halving event approaches, U.S. mining companies are not only purchasing new mining machines to expand their hash rate but are also dealing with their old models. Approximately 6,000 old Bitcoin mining machines will soon be idled and sent to a warehouse in Colorado Springs, where they will be refurbished and resold to overseas buyers looking to profit from mining in a low-cost environment.Since electricity is the largest expense in Bitcoin mining activities, mining companies, including publicly listed firms Marathon Digital Holdings Inc. and Riot Platforms Inc., need to reduce their operating costs to maintain positive profits. Theoretically, the hash rate of old mining machines may still be profitable after the halving, but it is unlikely to be realized given the high electricity costs in the U.S.According to estimates by Ethan Vera, COO of cryptocurrency mining services and logistics provider Luxor, about 600,000 S19 series mining machines (which account for most of the machines currently in use) are being transferred from the U.S. to Africa and South America. Some buyers are waiting to purchase second-hand mining machines until after the halving, believing that prices will drop further by then. Data shows that in March 2022, the price of second-hand S19 model mining machines was around $7,030. A year later, as Bitcoin prices fell, the price of second-hand S19 machines plummeted to about $900. With the upgrading of mining machines, the price of second-hand S19 has dropped to about $427 this month, and it is expected to be around $356 after the halving in May.Additionally, some U.S. miners have chosen not to sell their hardware but instead to relocate their equipment to areas with lower electricity costs and third-party data centers.
