Bitmain Cuts ASIC Prices as Mining Profitability Falls to Multi-Year Lows
Bitmain has sharply reduced prices on its ASIC miners as the mining industry faces one of its most severe profitability squeezes in years. With revenues per unit of hashpower dropping below sustainable levels, demand for new hardware has weakened across the market.
Mining Economics Under Pressure
The price cuts come as hashprice, the expected daily revenue earned per terahash of computing power, has fallen to around $35 per TH/s per day. Industry analysts consider approximately $40 per TH/s per day to be the break-even threshold for most mining operations.Operating below that level means many miners are running at a loss, especially those relying on older or less energy-efficient machines.
Falling Demand for New Hardware
As profitability shrinks, miners are delaying or canceling hardware purchases. Capital expenditure becomes difficult to justify when margins disappear, and return on investment timelines extend far beyond acceptable risk levels.This dynamic disproportionately affects manufacturers selling premium-priced equipment into a market that no longer rewards efficiency upgrades.
Pressure From the Secondary Market
At the same time, competition from the secondary market is intensifying. Used ASIC miners, often sold by operators exiting the industry or downsizing operations, are flooding the market at heavily discounted prices.This oversupply further compresses margins for manufacturers and forces aggressive pricing strategies to remain competitive.
Why Bitmain Is Cutting Prices
For Bitmain, lowering prices appears to be a defensive move rather than a growth strategy. By reducing inventory prices, the company aims to stimulate demand, clear stock, and preserve market share in an increasingly hostile environment.The alternative would be slowing production and absorbing fixed costs while waiting for conditions to improve, a risky option in a rapidly shifting mining landscape.
Industry-Wide Implications
Bitmain’s pricing decision signals broader stress across the mining supply chain. When the largest ASIC manufacturer is forced to discount aggressively, it reflects not just short-term volatility but structural pressure on mining economics.Smaller manufacturers and resellers may struggle to survive prolonged periods of depressed demand and thin margins.
Conclusion
The sharp reduction in ASIC prices highlights the severity of the current mining downturn. Until hashprice recovers and mining returns to sustainable profitability, hardware manufacturers are likely to remain in survival mode rather than expansion. Bitmain’s move is less about opportunity and more about endurance.Editorial Team - CoinBotLab
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