The Current State of Bitcoin ASIC Marketplace

In our previous pieces, we discussed bitcoin’s declining hashprice as a result of the market slump since early May and the small correction of bitcoin’s mining difficulty. It is obvious at the moment that mining companies are facing shrinking revenues in dollar terms and increasing direct costs due to surging energy prices globally. 

Apart from the declining profitability, mining companies are also bleeding on the equipment front because the value of bitcoin ASIC miners tends to follow bitcoin’s price. Institutional mining firms pre-ordered over 1 million units of top-tier ASIC miners in 2021 that are expected to arrive in 2022. That translates to capital expenses worth billions of dollars in remaining payments if they wish to move forward with their expansion plans.