Bitcoin’s recent price surge has led to a remarkable 30% increase in mining equipment prices, particularly in Shenzhen’s Huaqiangbei district, a well-known hotspot for crypto hardware. A recent report by Wen Wei Po highlights that the Antminer S21 335T, a popular mining device, now commands a price of $5,600, which is around RMB 40,700. This marks an impressive jump from last year’s pricing of $3,836.19, approximately 28,000 RMB. The demand for the Antminer S21 XP, featuring advanced water-cooling capabilities, is also skyrocketing, contributing to stock shortages on Bitmain’s official website.
Merchants in Huaqiangbei are experiencing a flood of bulk orders from diverse international buyers, including those from Russia, the U.S., and Canada. The backbone of this soaring demand lies in Bitcoin’s (BTC) rising value, which has rendered mining operations considerably more profitable despite the heightened costs for equipment.
Interestingly, Hong Kong has emerged as a pivotal export hub for these transactions. Following the 2021 ban on cryptocurrency mining in China, many transactions for mining devices have shifted to Hong Kong, thanks to its free-trade environment and efficient logistics. Merchants in Shenzhen report that most new mining gear is exported via Hong Kong, taking advantage of its status as a key node for international trade.
The logistics services available allow for same-day delivery of mining machines to Hong Kong, where they are then dispatched to various domestic and foreign air and sea transports.
Bitcoin mining has not been without its challenges. Recently, the mining difficulty surged to unprecedented levels, hitting a staggering all-time high of 108.52 trillion at block height 874,944. As recorded by TheMinerMag, the mining difficulty adjusted up by 4.43% on December 16. Data from Hashrate Index reveals that the network’s average hashrate reached 771 EH/s over the past two weeks, while the seven-day moving average exceeded 800 EH/s. This surge in mining difficulty, coupled with a drop in hash price, notably illustrates the broader macro implications of BTC’s price trends on mining economics, shedding light on the current hardware shortages and the escalating price of equipment.
Despite the outright ban on mining activities imposed by mainland China, the regulatory framework in Hong Kong allows for the sale and export of mining hardware. This loophole provides merchants a valuable opportunity to meet growing global demand for mining equipment.
