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Bitcoin mining crash: Bitmain cuts hardware costs to remain afloat

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Based on reports from industry representatives and internal tariffs, Bitmain has sharply reduced the offering prices for several of its Bitcoin ASIC models, a move linked to declining mining revenues and bloated inventories.

The cuts bring some high-end equipment near wholesale break-even levels for operators paying standard electricity rates.

After the April 2024 halving, which reduced the Bitcoin block reward to three,125 BTC, mining corporations are increasingly turning to renewable energy to scale back operating costs.

Normally, higher BTC prices help offset the reduced subsidy, but 2025 fell in need of expectations: after peaking above $126,000 in October, Bitcoin price fell sharply to $80,000 by November.

S19e XP Hydro and Bundle Deals

According to dealer price sheets, the S19e XP Hydro and 3U S19 XP Hydro are offered for around $3 per TH/s in some factory sales and promotions.

According to market figures, S19 XP+ Hydro units are priced at around $4 per TH/s. Older and immersion-ready models just like the S21 Immersion and S21+ Hydro are listed for around $7 to $8 per TH/s in certain listings, while some auction listings began with bids near $5.5 per TH/s for S19k Pro variants.

Mining margins are putting pressure on operators

According to market researchers, mining revenue per unit of hashpower has fallen to levels not seen in several years. This decline has caused many operators to rethink their expansion plans and search for cheaper equipment or lower hosting plans.

BTCUSD is now trading at $87,430. Chart: TradingView

Bitmain's price movements look like geared more toward rapid stock relocation fairly than margin support. Some miners reported that the value cuts were large enough to make previously unprofitable stakes look acceptable again – but provided that electricity costs remain low and Bitcoin prices recuperate.

Market response and secondary sales

The used equipment markets responded quickly. Some resellers further reduced prices to match factory reductions, making a cascade of lower bids and more machines changing hands.

Auction formats and bulk sales began appearing in public offerings, an indication analysts say manufacturers try to clear inventory without posting steep discounts across all channels.

Smaller operators expressed relief; Larger operations said they were watching closely and weighing whether to purchase latest units or delay purchases.

Competition and industry context

Reports suggest weak demand across the sector, not only one manufacturer. Competing brands have subsequently adapted their offerings and second-hand offerings have increased.

The overall effect was a faster alternative cycle for probably the most efficient miners and accelerated scrapping or resale of older rigs.

Hashprice metrics, which measure revenue per TH/s, are at multi-year lows, leaving less room for recovery unless Bitcoin price rises or electricity costs fall.

Shorter-term, cheaper latest drilling rigs could ease liquidity pressures for some operators who can deploy electricity at favorable rates. In the long run, there could possibly be consolidation available in the market as undercapitalized miners exit the corporate.

Featured image from Pexels, chart from TradingView

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