Bitcoin’s surge sparks 30% hike in mining gear prices as buyers move to Hong Kong

As a seasoned researcher with a keen interest in the dynamic world of cryptocurrencies, I find myself constantly intrigued by the ever-evolving landscape of Bitcoin mining. The recent surge in Bitcoin’s price has undeniably ignited a frenzy in the market, particularly in Shenzhen’s Huaqiangbei district – a global epicenter for crypto hardware.

Due to the recent increase in Bitcoin’s value, there has been an uptick in the cost of mining equipment, particularly in Shenzhen’s Huaqiangbei district – a well-known global center for crypto hardware. Notably, prices have risen by approximately 30%.

Based on a report by Wen Wei Po, the cost of an Antminer S21 335T mining equipment currently stands at approximately $5,600 USD or 40,700 CNY. This represents a 30% increase compared to its price last year, which was around $3,836.19 USD or 28,000 CNY. Interestingly, there is substantial demand for the Antminer S21 XP, another mining device featuring water-cooling facilities, resulting in stockouts on Bitmain’s official website.

There’s been a significant increase in large-scale orders placed by buyers from Russia, the U.S., and Canada at Huaqiangbei markets. These orders consist of hundreds or even thousands of units, fueled by the rising value of Bitcoin (BTC). As a result, mining businesses are becoming increasingly profitable, despite the higher costs associated with acquiring equipment due to Bitcoin’s price hike.

Hong Kong has become an important export hub

2021’s restriction on cryptocurrency mining in China led to an increase in transactions involving mining equipment being routed through Hong Kong because of its free-trade climate and logistical advantages. Merchants in Shenzhen stated that the majority of new mining equipment is shipped overseas via Hong Kong, leveraging its role as a hub for global trade. Expedited cross-border logistics services can transport mining machines to Hong Kong on the same day, after which they are dispatched via both air and sea freight to domestic and international destinations.

At a price range of $100,000 to $108,000, the difficulty of Bitcoin mining reached its peak ever recorded. This significant increase in mining difficulty occurred around 1:33 UTC on December 16, at block height 874,944, as reported by TheMinerMag. The adjustment resulted in a rise of 4.43%, setting the new record at approximately 108.52 trillion.

As an analyst, I’ve been tracking the performance of the network, and based on data from Hashrate Index, it’s evident that the average hashrate over the last 14 days peaked at a staggering 771 Exahash per second (EH/s), with the seven-day moving average consistently surging above 800 EH/s. This remarkable increase in hashing difficulty, coupled with a decline in hash price, is a clear reflection of Bitcoin’s recent price surge on mining economics.

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2024-12-19 11:14