Bitmain, the leading manufacturer of Bitcoin mining equipment, has started selling its equipment at fire-sale prices. Its very low prices highlight a struggling industry facing a bleak future.
Older S19e XP Hydro and 3U S19 XP Hydro models are going for $3 per terahash. That’s incredibly affordable. The company’s also bundling four S19 XP+ Hydro units with an ANTRACK V2 container at about $4 per terahash, with shipments starting in January. Even the newer S21 models dropped to $7—$8 per terahash. This equipment had commanded premium prices.
Throwing in Hosting to Move Product
Bitmain is not only slashing prices on their mining machines right now, but it is also making it easier for miners to start (or continue) during challenging times. It is offering “all-in-one package deals”: miners buy the Antminer hardware from it, and it also bundles in hosting (meaning they take care of running the machines in their big data centers).
These deals are being offered in the U.S., Kazakhstan, Brazil, Paraguay, and Ethiopia, charging 5.5 to 7 cents per kilowatt-hour plus a small management fee. It’s a package deal meant to make buying easier when nobody really wants to buy.
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December pricing sheets show this isn’t just a limited promotion. Bitmain’s going deep on discounts because they need to clear warehouses. The problem? Bitcoin’s network hashrate continues to climb, while what miners actually earn is at its lowest point in years.
The network kept getting harder to mine on, with difficulty rising steadily throughout the year (with multiple record highs). This meant miners had to work much harder just to earn the same rewards.
Then came the big October market crash, when Bitcoin’s price dropped sharply from its highs, squeezing profits even more as revenues fell while costs (like electricity) stayed high.
All of this made mining companies super cautious—many are now thinking twice before buying any new equipment, and some even shut down older machines.
By mid-December 2024, the total network hashrate (overall mining power) had finally dipped about 4%—the biggest drop since the post-halving period earlier that year. This small breather could benefit the miners.
Overall, it’s been a rough ride. Bitmain is clearly aware of the challenges ahead. Miners can’t afford upgrades right now, so the manufacturer’s doing what it takes to keep product moving, even if the margins suffer.
