According to Reuters on Friday, the shortage of chips is seriously affecting the distribution chain of bitcoin mining.
In fact, Bitmain – one of the largest Bitcoin mining producers – sold off its shares by August 2021, according to information on the website. Apart from selling them, Bitmain mining hardware is now enjoying a hefty price tag.
For example, in November 2020, Antminer shipped the S19 at $ 1,897 per unit. At the time of writing, the same miner on the company’s website is priced at $ 2,767, a 45% increase.
“There aren’t enough chips to support mining,” Alex O, vice president of semiconductor maker Inosilicon, told Reuters.
The small available reserves are said to come from large North American mining companies. Back in 2020, American mining giants such as Riot Blockchain, Bitfarms, and Marathon have dramatically increased their holdings through massive acquisitions from Bitmain and rival MicroBT.
This expansion in capacity happened even after Bitcoin went through a four-year half, when bonus rewards were banned two years later. Thus, as China continues to dominate global retail, North American mining companies are reported to be pushing supplies to China.
Chinese mining companies also faced noticeable disruptions too late, including frozen tidal energy in 2020 that prevented some businesses from paying for their electricity bills. As Cointelegraph previously reported, authorities in China’s Yunnan province have also suspended electricity supplies to miners in the area.
Smaller miners also run the risk of being out of market value. Equipment bonuses, even for used excavators, as well as block reward reductions can have a significant impact on your bottom line.
Other semiconductor industries are already feeling the effects of the ongoing shortage. Car manufacturers such as Ford have announced the closure of some of their factories.