Why have Bitcoin mining rig prices in Shenzhen skyrocketed, even though cryptocurrency mining is banned in China?
The cryptocurrency market is witnessing a surge in Bitcoin prices, driving up the demand for mining rigs. In Shenzhen, China, the price of mining rigs has skyrocketed, recording a 30% increase compared to the same period last year.
This wave is fueled by several factors, including Donald Trump's endorsement of Bitcoin and low electricity costs in certain countries, particularly Russia, making Bitcoin mining more appealing.
Merchants in Huaqiangbei report that the supply of mining rigs is currently depleted. Source: Wenweipo
According to a Hong Kong newspaper reporter in the Huaqiangbei commercial district of Shenzhen, the price of Antminer mining rigs produced by Bitmain has risen significantly, with some flagship models already sold out.
Merchants revealed that buyers come from various countries, including Russia, Ethiopia, the United States, and Canada, often placing large orders ranging from hundreds to even thousands of machines.
Specifically, the Antminer S21 335T is now sold for 40,700 RMB (approximately 138 million VND), marking a 30% increase from last year's price of 28,000 RMB (approximately 95 million VND). Even the Bitmain S21 XP 473T water-cooled mining rig, priced at 73,900 RMB (around 251 million VND) on the official website, remains out of stock.
This is only the early stage of the bull market; the real bull market will arrive next year. At that point, mining rigs will enter a FOMO phase, prices will continue to rise, and shortages will become even more severe.
-- A merchant shared --
He further shared that his Canadian clients mine Bitcoin locally with an electricity cost of only 0.37 RMB/kWh (approximately 1,258 VND/kWh), which guarantees profitability.
The recent surge in Bitcoin prices is closely linked to Donald Trump's election as President of the United States. Trump has publicly endorsed Bitcoin and cryptocurrency, proposing the establishment of a "National Strategic Bitcoin Reserve Fund" in the U.S.
His appointments of several cryptocurrency supporters to his cabinet, particularly the nomination of Paul Atkins as Chairman of the U.S. Securities and Exchange Commission, have provided a significant boost to the Bitcoin market.
Last week, Trump reiterated that he would take important actions regarding cryptocurrency, positioning the U.S. to become the global leader in this field. He also hinted at the possibility of establishing a cryptocurrency reserve fund, similar to oil reserves.
As the world's largest economy, the U.S.'s stance on Bitcoin has garnered global investor attention. Following Trump's election, Bitcoin's price surged a staggering 57% within six weeks, surpassing the $100,000 mark on December 5th.
Since China banned cryptocurrency mining projects in 2021, many businesses have moved their operations abroad. Merchants selling mining rigs in Shenzhen have chosen Hong Kong as the location for transactions and deliveries. Hong Kong, being a free trade port with a convenient logistics system, allows for the transportation of mining rigs worldwide by air or sea.
According to Chinese law, cryptocurrency business activities are illegal and completely banned. Buying and selling Bitcoin mining rigs is also considered a violation of the law. In contrast, in Hong Kong, buying and selling mining rigs is legal. As a result, merchants in Shenzhen have chosen Hong Kong to "circumvent the law," ensuring both legal safety and convenience for export.
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