Original Title: "Bloomberg: Bitcoin Miners Facing Chip Shortage Due to Surging Demand"
Original Source: Cointelegraph Chinese
According to Reuters on Friday, the chip shortage has significantly impacted the Bitcoin mining hardware supply chain.
In fact, as per information on the Bitmain website, by August 2021, the inventory of Bitmain, one of the major Bitcoin miners, was already sold out. Besides the low inventory, Bitmain's mining machine prices are now heavily inflated.
For example, back in November 2020, the Antminer S19 was priced at $1,897 per unit. As of writing this article, the same miner on the company's website is priced at $2,767, a 45% increase.
Alex Ao, Vice President of the semiconductor manufacturer Innosilicon, stated in an interview with Reuters, "There are not enough chips to support the production of mining machines."
Reportedly, the limited mining machine supply has been purchased by major mining companies in North America. As early as 2020, U.S. mining giants like Riot Blockchain, Bitfarms, and Marathon significantly increased their inventory by purchasing a large number of mining machines from Bitmain and its competitor MicroBT.
This capacity expansion occurred even during Bitcoin's quadrennial halving event. Therefore, despite China still dominating the global hash rate distribution, interests in North American mining are reported to be "squeezing the supply to China."
Chinese miners have recently suffered significant setbacks, including the 2020 freeze-out, which left some miners unable to pay their electricity bills. As previously reported by Cointelegraph, authorities in Yunnan Province, China, also cut off power supply to miners in the region.
Smaller mining companies also face the risk of being pushed out of the market. The hardware price surge, combined with the reduction in block rewards, greatly impacts their profits, even with the use of second-hand mining machines.
Other industries relying on semiconductors have already begun to feel the ongoing shortage effects. Automakers like Ford have announced partial factory closures.
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