Bitcoin Miners Await Further Price Decline in Refurbished Mining Devices — TradingView News

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According to a recent Bloomberg report, more than 6,000 outdated Bitcoin mining devices in the United States will be refreshed and resold to miners across the world. Amidst Bitcoin’s fluctuations and anticipations of the upcoming Bitcoin halving, the new development is intended to help miners yield profit during the halving event.

The refurbishment of the machines would reportedly take place in a warehouse in Colorado Springs. Later, these devices would be resold to miners across various nations, especially in countries with less electricity costs, like Africa and South America.

The move is led by Sunnyside Digital, a hardware trader and distributor in Canada. Taras Kulyk, the CEO of Sunnyside Digital, acknowledged the matter as a “natural migration.” He asserted that while electricity is a crucial aspect of Bitcoin mining, miners looking for lower-cost environments are common, especially before Bitcoin mining, which is the miners’ mainstream revenue.

Kulyk stated that he has resold refurbished computers to miners in Ethiopia, Tanzania, Paraguay, and Uruguay in the past few years. Commenting on the increased demand for such devices during the halving period, he added, “This is accelerated by the halving.”

Bitcoin halving, which splits the halving reward in half, reduces the current reward of 6.25 to 3.125 in the upcoming halving slated to be in April 2024. While the halving event happens once in every four years, Bitcoin miners await the event to yield profits.

Older models, such as the S19 series, might not be profitable to run in the US. However, Jaran Mellerud, CEO of Dubai-based Hashlabs Mining, stated that these computers can “generate decent profits and get an extended life if hosted” in parts of Africa.

Reportedly, the price of older S19 computers plummeted from $7,030 in March 2022 to $900 in March 2023. In March 2024, it again fell to nearly $427, and the miners expect a further price drop.