Lack Of Bitcoin Mining Rigs Amid High Demand
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Lack Of Bitcoin Mining Rigs Amid High Demand

Recently, Bitcoin miners are facing a new issue as shortage in mining rigs supply. Lack of Bitcoin mining rigs amid high demand is one of the latest issues, which had a negative impact on mining industry.

 

Bitcoin miners and mining rigs shortage

In fact, the main issue is lacking a chip, which specifically uses for manufacturing mining rigs. Reuters reported on Friday that this issue affected mining hardware distribution significantly.

In a reaction to the current situation, Bitmain, one of the main Bitcoin miner manufacturers, announced on its website that this company sold out all its inventory until August 2021.

In addition, Bitmain mining rigs are experiencing price growth in the market.

Bitmain mining rigs are getting expensive

The Antminer S19 was selling at the price $1,897 per unit including shipping cost back in November 2020. However, it is priced at $2,767, which shows a 45% growth in price.

Alex Ao, Vice president of Innosilicon, stated that there are not enough chips in order to support mining rigs manufacturing lines.

In fact, the mining firms in North America already bought all the available supply of mining rigs. Moreover, mining giant firms in United-States such as Bitfarms, Riot Blockchain and Marathon also increased their inventory by buying mining rigs in bulk from MicroBT and Bitmain.

Actually, the main reason for current demand expansion is Bitcoin last halving, which placed on 11 May 2020. By cutting block rewards to half, miners are adding to their hardware in order to sustain their mining capacity.

Lack Of Bitcoin Mining Rigs Amid High Demand; Mining industry is shifting

Although China has the most global hash rate distribution, North American miners are becoming dominated in this industry.

Furthermore, China government cut the electricity supply for some miners in Yunnan province.

On the other hand, small miners are in danger of losing their position in this industry. There are two main reasons, which will impact small miners in long term. The first is reduced block rewards and the second is premiums on hardware. In fact, the premium is higher than expected even for second hand rigs.

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