Last year, bitcoin miners were racing to sign orders with manufacturers. Now, hundreds of thousands of brand new machines are stuck, unused, inside their boxes. egreechee reports.
The reasons aren’t hard to follow: The price of bitcoin and other tokens have plunged dramatically, making the digital assets that miners earn less valuable. And miners’ costs have risen because of skyrocketing energy prices. It takes a lot of electricity to mine bitcoin, a process that involves specialized computers, known as mining rigs or machines, guessing the answer to an equation to receive bitcoin as a reward.
Luxor’s Vera said that there is “limited rack space immediately available,” more than a year after China banned crypto mining, sending miners flocking to the U.S. and Kazakhstan. That has allowed hosting companies in countries that haven’t banned mining to boost their fees., or the amount of computing power being directed toward a particular cryptocurrency’s blockchain.
“There’s a difference between having no rack space and having no cheap rack space,” said Alex Martini, CEO of New York-based miner Blockfusion USA. “We have 32 [megawatts] of empty space, and there are other sites that have [a total of] 400 MW of rack space,” but customers aren’t interested because energy rates are too high and the price of bitcoin is too low, Martini said.
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