Bitmain Stops Sales of Mining Machines in Bid to Buoy Prices Facing China’s Crackdown
Bitmain has decided to hit the brakes on sales of its crypto mining rigs in a bid to shore up prices adversely affected by the outcome of China’s actions against local miners.
According to a report by Bloomberg on Wednesday, the Beijing mining giant’s decision comes as top-tier rigs have shed their value by about 75% since April.
Delaying further sales could be seen as a way for Bitmain to shield both itself and mining clients from falling prices.
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The decreases in value can be closely tied to an oversaturation of used machines being dumped on local markets across China following the country’s swift and decisive anti-crypto crackdown.
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Indeed, China’s attempts to stamp out cryptocurrency mining in hydro-rich provinces throughout the country has forced many to seek shelter in neighbouring countries, including Kazakhstan.
On Tuesday, the China’s central bank ordered the country’s major financial institutions to stop facilitating crypto transactions, which saw bitcoin and other cryptocurrency fall, ending a four-week-long consolidation period.
