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Since the beginning of November, the price of Bitcoin mining equipment has risen by 35%-shortages have forced miners to switch to the secondary market

According to Hashr8, the price of the latest generation of mining equipment has increased by 35% since the beginning of November. The observed price increase comes amid reports that Bitmain and Microbt are sold out until May 2021. As the supply of mining equipment fails to meet demand, some miners are now forced to turn to the secondary market.

Hashr8’s John Lee Quigley wrote in his blog that the Bitcoin mining machine market is heating up because “everyone is optimistic about Bitcoin, and the rise in mining machine prices definitely reflects this.”

BTC is bullish: since early November, rig prices have risen by 35%-shortages have forced miners to switch to the secondary market

When Bitmain and Microbt were sold out, Quigley revealed that a company, Marathon Patent Group, did manage to obtain a “purchase agreement for the latest generation of rigs.” According to Quigley, Marathon will receive 6,000 Antminer S-19J Pro rigs in August 2021 and another 4,000 rigs in September 2021. These purchases will increase Marathon’s total hash rate output to 3.56 EH/s.

At the same time, Quigley shared his views on the prospects of the mining market. He said:

With big companies like Marathon buying commodities, and sentiment indicators show a record high for a bullish outlook, it seems that the mining machine market will not slow down anytime soon.

As more and more institutional investors join the buying frenzy of bitcoin, bitcoin analysts predict that this will drive the value of digital currencies to rise further. When the price of Bitcoin increases significantly, everything in the mining industry will increase.

At the same time, as Quigley explained, the BTC price increase only helps to encourage “current miners to expand their operations to take advantage of greater profit margins.” On the other hand, “new miners are also trying to enter and ensure a part of profitable mining conditions.”

Do you agree with Quigley’s statement that the increase in the price of BTC is the cause of the increase in the price of mining equipment?

Picture Credits: Shutterstock, Pixabay, Wiki Commons

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