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Crusade in the global cryptocurrency market has forced bitcoin mining hardware suppliers to sell off their machines at fire-sale prices.
Canaan Creative, the world's second biggest maker of cryptocurrency mining rigs, has already put all its Avalon-brand equipment on sale at US $ 200 per unit, according to company representative Steven Mosher on an email on Friday.
"You can think about this [price markdown] as me rescheduling Black Friday by a week, "said Mosher, referring to the annual.
Canaan's flashes on Friday, which was first reported by digital currency news site CoinDesk, marked a significant discount program for the Chinese company, which previously sold its most powerful mining model – the AvalonMiner 921 – for US $ 742.
As bitcoin prices fall, mining cryptocurrencies is no longer profitable for many
Over at Huaqiangbei, one of the world's biggest electronics markets, in the southern coastal city of Shenzhen, they are selling the bitcoin prices.
Only a handful of shops remain at the shopping center in Huaqiangbei. On a Monday afternoon, one of the vendors, Surnamed Liu, was taking a nap, while other vendors were slacking off on their smartphones.
"There are almost no shoppers now," said the 50-year-old Liu. "We have been idle here for two months."
Liu had set up shop in Huaqiangbei in May this year. He still has not made any profit after investing more than 1 million yuan in the business. He plans to close shop once his one-year lease ends.
"Here's a sincere suggestion for those who want to make money with bitcoins: be cautious," he said.
The mining gear price cuts have as amid to crash into the digital currency market. Prices of bitcoin, the world's leading cryptocurrency, fell to a 13-month low of about US $ 3,600 last month, according to date from CoinMarketCap. Bitcoin is currently trading at around US $ 4,000, down from US $ 6,400 at the start of November.
The total market value of cryptocurrencies has been slumped to US $ 130 billion, which is less than one-fifth of its value during the market's peak in January.
Bitcoin's deepening crash now rivals its worst-ever bear markets
The most successful bitcoin offshoot, was largely blamed for the market crash. The world's fourth largest cryptocurrency split into two distinct entities on November 16 amid long-standing, fundamental disagreements in their developer community.
That meltdown has left miners – those who process returns in new units of cryptocurrency as reward – in a vulnerable position. It has become unprofitable for these companies, if they consume power at a rate of 0.4 yuan (6 US cents) per kilowatt-hour, according to F2Pool, one of the world's biggest bitcoins mining pools.
F2Pool, which is headquartered in Beijing, said at least 600,000 bitcoin mining machines have been shut down since the middle of November.
Mining bitcoin uses more energy than what is needed to excavate gold, platinum or copper: study
Bitcoin mining machines, including the Antminer S7 and Antminer S9 from Bitmain Technologies as well as Canaan's AvalonMiner 741, because they have become too expensive to operate under market conditions, according to estimates by F2Pool last month.
The small and mid-sized cryptocurrency will be taken to the advantage of Canaan's sales promotion.
"Bitcoin mining is a long-term investment," he said.
Cryptocurrency mining rig maker Canaan lets Hong Kong IPO application lapse
Still, the cryptocurrency market presented in Hong Kong this year. The company leave its IPO application for the Hong Kong stock exchange website. The company has previously declined to comment on the matter.
The stock exchange and regulators had many questions about its business model and prospects, according to a November 15 report by Reuters, which cited sources close to the deal.
Bitmain, the world's largest supplier of cryptocurrency mining equipment, and Ebang International still have pending IPO applications with the Hong Kong stock exchange.
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