With Bitcoin’s price surge continuing, the cost of mining equipment has also seen a significant increase, particularly in Shenzhen’s Huaqiangbei district, a prominent global hub for crypto hardware. The price of the Antminer S21 335T mining device has risen to $5,600, representing a 30% increase from last year. This surge in prices has also affected the demand for the Antminer S21 XP, a raw mining device with water-cooling capabilities, resulting in stockouts on Bitmain’s official website. Buyers from countries like Russia, the U.S., and Canada are placing bulk orders for hundreds or even thousands of units, driven by the growing profitability of mining businesses despite the higher equipment costs.
Following the 2021 ban on cryptocurrency mining in China, transactions involving mining machines have been redirected through Hong Kong due to its favorable free-trade environment and efficient logistics. Shenzhen merchants have noted that a significant portion of new mining equipment is being exported through Hong Kong, leveraging its position as a key stop for international trade. Cross-border logistics services ensure swift delivery of mining machines to Hong Kong, facilitating their subsequent transport via air and sea to domestic and foreign markets.
BTC mining difficulty hit an all-time high in the $100K to $108K range, with a 4.43% increase at block height 874,944 on December 16. Data from Hashrate Index indicates that the network’s average hashrate over the last 14 days reached 771 EH/s, while the seven-day moving average exceeded 800 EH/s. These escalating challenges in mining difficulty and the corresponding decline in hash price reflect the broader implications of Bitcoin’s price surge on mining economics. This trend underscores the hardware shortages, price escalations, and the intensifying global competition among miners. Despite China’s explicit ban on mining-related activities, the legal landscape in Hong Kong enables the sale and export of mining hardware, providing merchants with a channel to fulfill the soaring global demand for mining equipment.
The newfound prominence of Hong Kong as an export hub for mining equipment marks a shift in the supply chain dynamics of the crypto mining industry. This redirection of transactions through Hong Kong underscores the region’s strategic advantage in facilitating international trade and logistics for mining equipment. The free-trade environment and efficient cross-border logistics services in Hong Kong have positioned it as a key nexus in the global distribution network for mining hardware, catering to the increasing demand from markets across the world.
The surge in demand for mining equipment and the resulting price hikes further emphasize the evolving landscape of the crypto mining industry amidst Bitcoin’s price rally. The increased profitability of mining businesses, despite the elevated equipment costs, has spurred a growing influx of orders from global buyers seeking to capitalize on the lucrative opportunities in the crypto mining sector. This trend underscores the resilience and adaptability of the mining industry in responding to market dynamics and regulatory changes, with Hong Kong emerging as a pivotal player in facilitating the international trade of mining equipment amid shifting geopolitical and economic landscapes.
