Russians are buying more and more ASIC crypto-mining equipment in the fourth quarter. Reported by KommersantWeak equipment and electricity prices have spurred buying, but supply remains strong and could increase further in the future.
Russian mining equipment prices fell 20% from August to October
Ask Application Specific Integrated Circuit (ASIC) Miner, specialized cryptocurrency mining rigs increased significantly in Russia in the fourth quarter of 2022, reports local news outlet Kommersant. The surge in demand is due to equipment and low electricity prices, the report added.
Despite weak demand for graphics processing units (GPUs), interest in ASIC rigs is on the rise, reports Kommersant. Chilkoot, one of his official distributors of cryptocurrency mining rigs in Russia, reportedly saw higher sales in his first two months of the fourth quarter compared to the entire third quarter. It is said that there were many. Additionally, in the first nine months of 2022, Chilkoot sales increased 65% over last year.
BitRiver analyst Vladislav Antonov said the Russian industrial market welcomes the latest developments as ASIC mining equipment prices are as close as possible to production costs. In the period from August to October, he added, mining equipment prices plummeted by nearly 20%. But prices have not fallen further since October, he added.
Chilkoot CEO Artem Eremin said his company works with legal entities and has noticed a 30% increase in mining equipment purchases in a single transaction since the beginning of the year. He said one of the reasons behind the drop in GPU prices is Evolution of Ethereum From Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanisms.
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Global cryptocurrency mining company defaults on equipment-backed loan
Given the current favorable conditions, entering the Russian bitcoin mining market will allow users to reap substantial profits over the next three years, Antonov added. The supply of domestic mining equipment remains strong and is likely to increase further as major mining companies pull out of the deteriorating cryptocurrency market.
Globally, cryptocurrency miners face a very tough situation. Many mining companies have defaulted on machine-backed loans, adding to the plight of cryptocurrency lenders.
According to BloombergThe mining company that secured a massive $4 billion in funding when its profit margins were as high as 90% is now facing bankruptcy, sending thousands of expensive mining machines back to lenders. .The situation has worsened since the incident FTX Collapse,this is contagious effect in the industry.
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About the author
Tim Fries is the co-founder of The Tokenist. he has a bachelor’s degree He holds a Bachelor of Science degree in Mechanical Engineering from the University of Michigan and the University of Chicago Booth earned his MBA from the School of Business. Tim is a senior associate on the investment team in RW Baird’s US Private Equity division and co-founder of Protective Technologies Capital, an investment firm that specializes in sensing, protection and control solutions.
