Bitmain, the largest crypto mining equipment manufacturer is all set to scale up its mining capacity ahead of the expected sharp drop in electricity costs in China this summer.
Electricity price in the summer season in China’s southwestern provinces hits rock bottom due to the availability of excess hydroelectric power, and the mining firm in the area is expected to take advantage of the low-cost electricity.
According to mining firms operating in that area who are familiar with the Bitmain’s plan, the company is set to deploy about 200,000 units of its own mining equipment in a mix of both latest and old equipment. The firm is likely to use the AntMiner S11 and S15 with a combination of older models like the AntMiner S9i/j.
The discussions are still in the early phases and still unclear which proof-of-work cryptocurrencies, the company will mine. Given the volume of mining equipment, Bitmain will deploy, it could simply run over $80 million to $100 million in valuation if Bitmain decides to sell that inventory. Its S11, S15 and T15 are all marked sold out on the company’s own online shopping platform.
The machines S9J, S11 and S15 can generate an average daily profit of $0.87, $1.8 and $2.88 respectively, based on Bitcoin’s current prices. While the benchmark electricity cost turns out to $0.05 per kilowatt hour during the summer time. Its still unclear what deal Bitmain will get, but mining operators in the region believe that it could average around $0.037 per kilowatt hour. Considering the profitability rate and electricity cost, potential monthly profits could well come near to $8 million, even if the company deploy the lower-end S9J equipment.
So, under current bear market conditions, it becomes a safer bet for the company to mine cryptocurrencies on its own rather selling the machines.
Despite the crypto winter, some of the company’s latest mining equipment are selling like hot cakes, surprising many industry watchers. Bitmain’s latest Z11 miner was reportedly sold out within 20 minutes after the pre-selling phase on its official website. This latest mining equipment will mine coins Equihash-powered Proof-of-Work coins like Zcash and has three times more hashing power plus saves up to 60% of electricity cost compared to its precursor Z9.
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