Demand for ASIC miners. Results 2020. Prospects for 2021

The mining giants are fighting over every ASIC rig. Bitmain products are sold like hot cakes. The company even had to switch to a pre-sale model

In early December, Bitmain was selling ASIC miners with a shipment date through May 2021. There was no shortage of orders due to the increased cost of bitcoin and the demand for mining.

To capitalize on the hype and capitalize on the interest in mining bitcoin, Bitmain doubled the cost of its mining rigs.

At the end of November, Bitman's Antminer S19 unit cost $1,897. Now it can be bought at a 98% markup for $3,769. Despite this, the three-month stocks, slated for sale until August 2021, were sold out in a couple of weeks.

Why is mining profitable

The reason mining is becoming more popular is very simple. It lies in the rise in the price of bitcoin, which in 2020 has risen in price by a little more than 300%.

Bitcoin mining has become much more profitable. On Sunday, income for every terahash per second (TH/s) reached $0.25. This is the highest level since August 2019.

The main problem of miners is the lack of equipment

With the entry of large institutional investors into the market, a great future is looming for miners. This has already been appreciated by the industry's largest players.

However, in their opinion, the lack of equipment will be an obstacle to the development of the mining industry in 2021. This can be easily traced by the "appetite" figures of the major industry players.

In this list, miners are arranged in the order of activity of purchasing equipment for mining in 2020:

  • Marathon Patent Group (MARA) 100,000.
  • Core Scientific 59,000.
  • Riot Blockchain (RIOT) 31,000.

Smaller companies have nothing left. All are bought by large market players. Therefore, as we wrote earlier, miners buy any available machines.

The aftermarket for used equipment is thriving. Moreover, the cost of the used model rose to 12-month highs.

For example, the S9 model, which could be purchased for $20 in May 2019, can now cost up to $130 and up. This is not the limit. We will monitor the situation and keep you informed!