Buying a Bitcoin miner in 2022 is much easier than in years past, with more brokers and sellers active now than ever before.
With the bitcoin ecosystem steadily grinding through a new bear market, bitcoin market indicators have been down, down, down over the course of the year. Bitcoin mining metrics are no exception, as public mining stock prices, hashprice (both in USD and BTC terms), and Bitcoin mining ASIC prices have fallen.
At the time of writing, Bitcoin mining ASIC prices are approaching multi-year lows. Compared to 2021, prices are very attractive, so how do you buy a Bitcoin miner in 2022?
This article will answer that question by briefly exploring how a variety of miners ranging from large public companies to home miners can purchase machines to expand operations.
Buying a Bitcoin Miner for Home Mining or Individual Mining
In the United States, Canada, and other places in the West, buying a Bitcoin mining ASIC is much more accessible than when the mining industry was largely concentrated in China.
Now, prospective home miners / small scale miners have easier access to inventory, as various companies offer low minimum order quantity (MOQ) deals.
Luxor Technologies’ ASIC Trading Desk, for example, consistently offers new machines like the S19J Pro and M30S++ for MOQs of 1, as well as larger bulk orders. Inventory is sourced from both Asia and North America with quick delivery times.
Other companies such as Compass Mining, Kaboomracks, and Upstream Data sell mining equipment at lower order quantities, as well.
When purchasing Bitcoin mining rigs, miners should consider the following:
- How to finance the Bitcoin mining ASIC, whether it be with cash (in the form of USD or BTC) or with a loan
- The fair-market price for the Bitcoin mining ASIC they are buying (this can be deduced by looking at the prices from other sellers, as well as using Hashrate Index’s ASIC Price Index)
- Current mining profitability and economics and how changes to Bitcoin difficulty and Bitcoin price will affect ROI
- Whether they will run the machine at home (typically a more costly option), or find a host to house their rig
Buying a Bitcoin Miner for Industrial-Scale Public and Private Miners
Large public and private mining companies that can afford to spend hundreds-to-millions of dollars typically have direct lines of communication with prominent Bitcoin mining ASIC manufacturers to negotiate deals.
These companies have the ability to pre-order and access top of the line machines ahead of smaller operations. In December 2021, Marathon pre-ordered a staggering 78,000 S19 XPs for a sum of $879 million. In April of 2022, Intel entered into an agreement to sell their newly developed ASIC chips to public miners such as Argo Blockchain, Block Inc., Hive Blockchain, and GRIID Infrastructure.
It is clear that in regards to ordering machines larger miners have a substantial advantage over operators without a direct line of communication with manufacturers.
Buying a Bitcoin Miner for Mid-Size Operations
Though massive public miners typically are first in line for machines, mid-size operations still have various avenues to acquire machines.
Prior to the Chinese mining ban and the subsequent North American mining boom in mid 2021, brokers in China were well established and the most prominent in the industry. That has dramatically shifted as numerous respected North American companies now offer ASIC brokerage services with high order filling capabilities, such as Luxor Technologies.
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