Even though leading bitcoin mining manufacturer Bitmain doubled prices to capitalize on overwhelming demand resulting from the surge in the price of bitcoin, it still pre-sold three months of inventory in a few weeks.
In early December, Bitmain was pre-selling bitcoin ASIC miners with an expected shipping date of May 2021, per CoinDesk’s prior reporting. Less than a month later, Bitmain has sold out through August 2021 and has raised its prices significantly.
In late November, Bitmain’s Antminer S19 was priced at $1,897. Now, the same machine sells for $3,769 a 98% markup.
Bitmain’s prices have gone up, said Kevin Zhang, vice president of business development for New York-based mining company Foundry, noting that demand for new ASICs shows no sign of abating soon. “But there also has been very limited extra allocation for May though July next year for S19s and S19 Pro models.”
With miners eager to buy any available machines, secondary mining markets continue to benefit from primary manufacturers’ low inventory with activity surging to its highest levels since 2017. Prices for more efficient, second-hand models have climbed to 12-month highs, per Luxor Technologies market data.
“Secondary markets are also booming”, said Amanda Fabiano, head of mining at Galaxy Digital. “S9s that were being sold in May 2019 for $20 are now being sold at $130 on some channels,” she told CoinDesk in an email.