Crypto Mining Machine Manufacturers, Retailers Suffering After Market Drops

Crypto Mining Machine Manufacturers, Retailers Suffering After Market Drops

Mining hardware manufacturers are being hammered by the price drop in cryptocurrencies, causing them to offer machines at a major discount.

Canaan Creative, the world’s second-biggest maker of cryptocurrency mining rigs, has its Avalon-brand equipment on sale at $200 USD per unit, a flash sale on hardware that once sold for upwards of $700.

The problem extends beyond manufacturers of the machines. Retailers are also feeling the pinch since the Nov. 15 plunge triggered by the Bitcoin Cash hard fork.

The cost of power versus the cost of cryptocurrency is the issue. When crypto prices hit a certain level, the cost of electricity to run the hardware puts miners into the red.

F2Pool, a mining pool in Beijing, claimed at least 600,000 bitcoin mining machines have quit since the Nov. 15 drop.

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