As China’s crackdown on cryptocurrencies continues to take a toll on crypto-related activities, popular Bitcoin mining machine maker Bitmain has announced that it would be halting ‘spot delivery’ worldwide for its machines.
Bitmain, in a report today by Bloomberg, hopes that the move would stop the prices of Bitcoin mining rigs from plummeting further after some miners had dumped their used equipment on the market causing the price of top-tier rigs to crash by 75%.
The firm believes its decision to reduce the supply of mining machines would help miners get better prices for their equipment and will also help them set up well in a new location.
While the move may seem in favor of Chinese miners fleeing the Beijing crackdown, Bitmain would also benefit from the reduced supply when it resumes delivery soon.
There is no specific date on when Bitmain will resume delivery, however, the move will not affect other machines used to mine smaller altcoins, the report added.
According to Bloomberg, the second-hand market value for a Bitcoin top-tier mining machine, which was worth around 600 yuan ($92.66) per THash/ second in April, has since fallen by more than 75% and is currently worth 150 yuan ($23.16).
China’s Recent Stringent Crypto Regulation
China has been working relentlessly since last month to crack down on crypto-related activities, including trading and mining, with the latter being the most affected.
China, which used to be home to more than half the world’s Bitcoin miners due to reduced electricity prices, is asking them to stop mining the largest cryptocurrency by market capitalization.
The crackdown was quickly implemented, with local government authorities disconnecting power supplies to various mining facilities.
As a result, several traders liquidated their positions fearing further dips. CNBC’s Jim Cramer admitted to selling almost all his BTC due to the growing FUD.
Chinese Miners Relocating to the U.S.
This prompted several miners to relocate to other countries, where Bitcoin mining operations are still allowed.
According to several reports, Chinese mining companies are moving their operations to Texas in the United States.
Texas is being favored over other cities because of its favorable crypto mining regulations championed by its governor Greg Abbott and its reduced electricity prices for the activity.