Bitcoin Supply Overhang: 6.6 Million BTC Bought Above Current Price

  vor 3 Tagen

On-chain data shows a chunk of the Bitcoin supply has its cost basis above the current spot price, which could potentially shape volatility if BTC rebounds. Bitcoin Supply Overhang Could Dictate Volatility & Selling Pressure As pointed out by CryptoQuant community analyst Maartunn in a new post on X, over 6.6 million BTC is being held above the latest spot price of the cryptocurrency. The on-chain indicator of relevance here is the “Supply In Loss,” which measures, as its name suggests, the total amount of Bitcoin that’s currently carrying some net unrealized loss. Related Reading: Bitcoin Extreme Fear Streak Extends To 13 Days On Christmas The metric works by going through the transaction history of each token in circulation to determine the price at which it was last transacted on the blockchain. If this previous transfer price was more than the current spot price for any coin, then that particular token is considered to be in a state of loss. The Supply In Loss adds up all coins fulfilling this condition to find the total situation on the network. A counterpart indicator called the Supply In Profit accounts for the supply of the opposite type. Now, here is the chart shared by Maartunn that shows the trend in the Bitcoin Supply In Loss over the last few years: As displayed in the above graph, the Bitcoin Supply In Loss shrunk to a value of zero as the asset’s price set its all-time high (ATH) above $126,000 back in October, but with the market downturn that has followed since then, the indicator’s value has shot up. Today, around 6.6 million tokens of the cryptocurrency sit below cost basis, equivalent to a third of the BTC supply in circulation. The recent highs in the Supply In Loss represent the highest degree of pain in the market since 2023. In another X post, the analyst has shared the chart for another Bitcoin indicator, this one called the UTXO Realized Price Distribution (URPD). The URPD contains information about how much BTC was bought last at each of the levels that the asset has visited in its history. Looks like a significant portion of the supply sits above the spot price | Source: @JA_Maartun on X From the chart of the URPD, it’s visible how the Bitcoin supply that’s in loss is distributed across the various levels right now. A few levels are particularly prominent in the degree of supply that they carry, while some others are notably thin with coins. Generally, investors who are in loss look forward to a retest of their cost basis so that they can get their money “back.” Once this happens, some of these hands decide to exit, fearing that BTC will go down again in the near future. This selling can make large supply clusters above the spot price, potential points of volatility. Related Reading: Bitcoin Price Trading Near ‘Fair Value,’ Says On-Chain Model Considering that a large portion of the supply is underwater right now, a venture back to higher levels could be met with selling pressure for Bitcoin. BTC Price Bitcoin has made some recovery during the past day as its price has returned to $88,600. Featured image from Dall-E, CryptoQuant.com, chart from TradingView.com

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Analyst Suggests This Country Could Become XRP Adoption Model

  vor 3 Tagen

Recent discussions about XRP adoption have intensified after financial analyst Paul White proposed that Japan could become the first country to implement XRP at a meaningful national scale. His argument draws from the current condition of Japan’s currency environment, its longstanding collaboration with Ripple, and the need for faster cross-border payment systems in the Asian region. Japan has been navigating persistent volatility in the yen and shifts in monetary policy, which White believes could push financial institutions to seek faster settlement options. In situations where capital moves quickly, systems that reduce settlement time may prove beneficial. XRP, he said, fits this requirement due to its ability to settle transfers instantly without requiring pre-funded liquidity pools. Why Japan Could Become $XRP First Full-Scale Use Case When FX volatility spikes and the yen cracks, institutions don’t wait, they move capital fast. That’s where XRP fits in. Instant liquidity, real-time FX, and cross-border flow without pre-funding. Japan’s largest… pic.twitter.com/xgMXM4DIfR — Paul White Gold Eagle (@PaulGoldEagle) December 22, 2025 Japan’s Position in the XRP Discussion Japan stands out in the XRP adoption conversation largely because of its existing ties with Ripple through SBI Holdings . This partnership history means Japanese banks and remittance firms are likely to adopt XRP-based systems faster than others, since they’ve already worked together. White emphasized that the focus should extend beyond market price discussions and include FX stress, liquidity demands, and geopolitical influence. Japan plays a central role in capital movement across Asia, meaning inefficiencies in its currency pipeline can have wider effects. Under such circumstances, a blockchain settlement asset may serve as a neutral channel for international transfers without interfering with monetary policy. Evidence of interest already exists. In September 2023, SBI announced plans to utilize XRP for overseas fund transfers across four Asian countries, highlighting early progress in practical application rather than speculation. To evaluate the potential financial effect if Japan adopts XRP extensively, several pricing possibilities can be outlined using current market data. XRP trades around $1.87 at the time of writing. With this as a reference point, three adoption-based valuation paths are frequently discussed in industry circles. We are on X, follow us to connect with us :- @TimesTabloid1 — TimesTabloid (@TimesTabloid1) June 15, 2025 Base Projection: $3 to $5 Range In a gradual adoption environment where financial institutions integrate XRP mainly for remittances and PHP/JPY settlements, steady usage could influence price appreciation without a supply shortage. This case assumes incremental growth and shared use with other settlement assets rather than singular dominance. Analysts at 24/7 Wall St previously forecast a price window of $3 to $4.5, citing Ripple’s stablecoin RLUSD expansion in Japan as a contributing factor. Moderate Projection: $8 to $12 Range Under a scenario where Japanese corporations and banks choose XRP as their primary settlement mechanism, demand could strengthen. Corporate liquidity flows are significantly larger than those through retail remittance channels, suggesting that increased institutional participation may attract more long-term investors. In such a development, analysts consider a move toward double-digit pricing reasonable. High Projection: $15 and Above A more ambitious path assumes Japan’s usage model becomes a benchmark for neighboring markets, encouraging broader Asian integration. To support this outcome, regulatory clarity, deep liquidity reserves, and high-frequency transactional demand would be necessary. Although this is a less conservative assumption, advocates believe regional adoption could reflect structural valuation growth over time. The central takeaway is that future performance for XRP depends primarily on operational deployment rather than short-term speculation. Japan offers a distinct landscape due to its progressive stance on crypto regulation, its economic scale, and existing collaborations with Ripple. Should institutional adoption expand, XRP could transition from a speculative digital asset to a functional element within financial infrastructure. However, these scenarios remain projections rather than confirmed outcomes. Disclaimer : This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses. Follow us on Twitter , Facebook , Telegram , and Google News The post Analyst Suggests This Country Could Become XRP Adoption Model appeared first on Times Tabloid .

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Zaporizhzhia Nuclear Plant For Crypto Mining? Putin Claims US Interest

  vor 3 Tagen

Russian President Vladimir Putin has reportedly said that the United States is interested in using Zaporizhzhia’s nuclear electricity for crypto mining. US & Russia Are In Talks About Zaporizhzhia Nuclear Power Plant Russia and the US are negotiating joint control of the Zaporizhzhia nuclear power plant, according to a report from Kyiv Post , citing Russian business newspaper Kommersant. The Zaporizhzhia nuclear power plant is located in Southeastern Ukraine and is the largest nuclear energy facility in Europe. It used to be responsible for more than a fifth of the electricity in Ukraine, but in 2022, Russian forces captured it, and it has since ceased power generation. It would now appear that discussions have emerged about the future use of the power plant. As per the report, Vladimir Putin said at a meeting with major business figures on Christmas Eve that the US is interested in using the plant’s electricity for crypto mining and for supplying power to Ukraine. Crypto mining, the most prominent example of which is Bitcoin mining , can be an energy-intensive process, leveraging computing power to solve mathematical puzzles that allow the operator to have a chance at adding the next block to the blockchain. Crypto mining has features like portability and modularity that have made many consider its application in using waste or excess energy in power grids to produce value in the form of digital assets . On a global scale, Bitcoin mining has seen some rapid expansion during the past three years, with the Hashrate , a measure of the network’s total computing power, expanding by almost five times. Restarting the Zaporizhzhia nuclear power plant for crypto mining, or any other purpose, however, wouldn’t be a simple task. By late 2022, all six reactors of the plant were shut down, with five of them being put in a state of cold shutdown. One reactor was kept in hot shutdown to produce steam for nuclear safety purposes. Even so, the plant isn’t in a state where a restart is possible, according to the International Atomic Energy Agency (IAEA). As the IAEA wrote in a press release earlier this year: Nuclear safety remains precarious at Ukraine’s Zaporizhzhya Nuclear Power Plant (ZNPP) and its six reactors cannot be restarted as long as the military conflict continues to jeopardize the situation at the site, Director General Rafael Mariano Grossi told IAEA Member States this week. Given this context, it only remains to be seen whether any reported negotiations around the nuclear power plant will actually lead it to be used for any energy-related purpose, crypto mining or otherwise. Bitcoin Price At the time of writing, Bitcoin is trading around $88,600, up 1.3% over the last 24 hours.

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Reports Suggest Social Engineering Led $2.5B+ 2025 Crypto Exploits

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Crypto exploits 2025 have resulted in over $2.53 billion in losses, with social engineering attacks leading at 55.3% or $1.39 billion, according to Sentora data. Private key compromises account for 15% at $0.37 billion, while Chainalysis estimates total theft between $2.7 billion and $3.4 billion. Crypto exploits 2025 losses exceed $2.53 billion, dominated by social [...]

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10‑year Treasury trades see $30.5 billion in delivery fails, Fed says

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$30.5 billion worth of 10-year Treasury trades failed to settle during the week ending December 10, the highest volume of delivery fails since December 2017, according to data from the New York Fed on Friday. The mess is tied to the Federal Reserve’s shrinking bond portfolio, a tightening plan that’s been in play since mid‑2022. And yes, it’s breaking things. The failed trades involved the most recently issued 10-year Treasury note. That specific batch came from a $42 billion auction held on November 12. The interest rates for lending that security collapsed so badly that some holders agreed to lend it at negative rates, meaning they gave it away cheaper than they got it back. In this type of repo transaction, settlement fails are almost guaranteed. That’s exactly what happened. Fed added less supply to the market in recent auctions Ahead of a Dec. 15 reopening of that same note, traders expected more supply to ease the pressure. That didn’t happen. Instead of the usual market relief, the reopening saw a sharp shortage. This wasn’t the regular “special” rate situation you sometimes see in repurchase agreements. This time, it was worse. And the blame goes to the Federal Reserve again. At that November auction, the Fed only took $6.5 billion worth of the notes for its own books. That’s a lot less than usual. In February, the Fed had added $11.5 billion to a similar-sized sale. In May, it took $14.8 billion, and in August, $14.3 billion. So, what changed? Here’s what changed: the Fed’s maturing Treasury holdings dropped sharply. Their System Open Market Account (SOMA) had just $22 billion maturing on Nov. 15, compared to $45 to $49 billion maturing in previous cycles. And since the Fed only reinvests maturing Treasuries above a certain cap, the amount they rolled over fell too. That cap has changed over time. Back in June 2022, the monthly cap was $30 billion. By September, it doubled to $60 billion. That tightening move directly impacted how much of each auction the Fed could touch. As a result, they didn’t step in to support the November 10-year note the way they had earlier this year. Same thing happened with three-year notes, by the way — smaller add-ons there too. This left traders scrambling to borrow a note that wasn’t widely available. Which meant more failed settlements, more headaches, and yeah, $30.5 billion worth of broken trades in just one week. Yields across Treasury curve change after holiday and strong economic data Markets came back online after the Christmas holiday, and the 10-year Treasury yield barely moved. It fell by less than one basis point, landing at 4.13%. The 2-year yield dropped over 2 basis points, ending at 3.483%. One basis point equals 0.01%, and in the bond world, yields move opposite to prices. The Treasury curve saw these changes on Friday: 1-month: 3.619% (+0.006) 3-month: 3.633% (-0.011) 6-month: 3.585% (-0.014) 1-year: 3.49% (-0.016) 2-year: 3.481% (-0.029) 10-year: 4.13% (-0.004) 30-year: 4.816% (+0.021) The moves came as traders processed fresh economic numbers. The Labor Department said jobless claims fell to 214,000 for the week ending December 20, down 10,000 from the week before. It came in below forecasts. And on top of that, the Commerce Department reported the U.S. economy grew 4.3% in Q1, marking the fastest pace in two years. Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free .

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XRP Price Prediction: Billionaire Who Once Mocked XRP Now Praises It – Big Announcement Coming?

  vor 3 Tagen

Michael Novogratz, founder of Galaxy Digital, recently applauded the Cardano and Ripple communities for staying strong through tough market conditions and legal challenges. His comments come just as many investors are beginning to turn away from top altcoins, yet some are showing unexpected resilience. In a recent podcast, Novogratz highlighted how tokens with deeply committed communities tend to survive even the worst market phases. This could be a key factor to watch for the next XRP price prediction . JUST IN: Mike Novogratz says " #Cardano $ADA and $XRP have strong communities." pic.twitter.com/lzFUNBXYZL — Angry Crypto Show (@angrycryptoshow) December 25, 2025 Although Novogratz once dismissed the XRP community as mostly retail traders unaware of the token’s flawed economics, his view has shifted. He now credits the so-called “XRP Army” with playing a key role in keeping the token afloat through years of volatility, showing just how powerful a loyal holder base can be. XRP Price Prediction: XRP Needs to Bounce From $1.80 to Target $3 XRP has shed 10% of its value this year, which makes it the 4 th worst-performing token in the top 5. However, in the past 7 days, the token has recovered slightly, posting gains of 0.5% during this period. Meanwhile, trading volumes have increased by 30% in the past 24 hours, and currently account for less than 2% of the asset’s circulating market cap. Source: TradingView Once again, XRP has found strong support at $1.80. This price zone has acted as a strong bouncing pad four times already in the past. Meanwhile, a descending triangle has formed as a result of the latest price action. This is a price compression pattern that tends to precede a big breakout. If the price rises above $2.20, this would invalidate the token’s bearish price structure, and a bullish breakout of the triangle pattern would be confirmed. XRP might be eyeing $3 in the near term, especially with big names like Michael Novogratz giving credibility to its long-term vision. But if you’re looking for the next breakout opportunity, a new project is quietly turning heads. Bitcoin Hyper ($HYPER) is building something game-changing by bringing Solana-level speed and fees to Bitcoin’s blockchain. The ongoing presale has raised close to $30 million as investors rally behind its mission. Can Bitcoin’s Biggest Bottleneck Finally Be Solved? This New Project Thinks So The Bitcoin OG blockchain has struggled with scalability issues since its launch, and this has prevented its ecosystem from further growing and reaching its full potential. Bitcoin Hyper ($HYPER) changes this by introducing a Solana-powered layer-2 chain that will process transactions fast and at a low cost to allow the community to launch new DeFi apps, payment platforms, meme coins, and more. The Hyper Bridge lets Bitcoin holders move their BTC into the Bitcoin Hyper network quickly and safely. By sending BTC to a secure wallet, users receive the same amount on Hyper’s Layer 2, where they can use it in fast, low-cost apps, including trading, payments, and even meme coin creation. As major wallets and exchanges begin to support the system, demand for $HYPER could surge, positioning it as one of the most exciting tokens in the market right now. To buy $HYPER at its discounted presale price, simply head to the official Bitcoin Hyper website and link up a compatible wallet (e.g. Best Wallet ). You can swap existing crypto or use a bank card to complete the transaction in seconds. Visit the Official Bitcoin Hyper Website Here The post XRP Price Prediction: Billionaire Who Once Mocked XRP Now Praises It – Big Announcement Coming? appeared first on Cryptonews .

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Nvidia avoids acquisition label with Groq structure to calm antitrust concerns

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Nvidia avoided calling its latest decision an acquisition while still spending $20 billion to secure people and technology from Groq, the startup it did acquire. The deal surfaced two days ago and landed quietly, as Cryptopolitan reported . No press release showed up. No regulatory filing followed. The only public confirmation we got later on came from a 90-word Groq blog post published after markets closed early for the holiday. Analyst Stacy Rasgon from Bernstein said that Nvidia is now so large it can close a $20 billion agreement on Christmas Eve and the market barely reacts, because really, stocks pretended not to see what’s gong on. Deal structure pulls Groq leaders and assets without a formal takeover CNBC reported that Nvidia agreed to buy selected Groq assets for $20 billion in cash, based on details shared by lead investor Alex Davis. Davis runs Disruptive and said his firm invested more than $500 million into Groq. Disruptive also led the company’s most recent funding round in September, which valued the startup at $6.9 billion. Groq said its founder and chief executive Jonathan Ross, company president Sunny Madra, and several senior leaders will join Nvidia to help scale the licensed technology. The post also stated that Groq will keep operating as an independent business. Simon Edwards, the company’s finance chief, will lead what remains of the firm. If this had been a clean acquisition, it would have been the largest in Nvidia’s 32-year history. The company’s biggest past deal was the 2019 Mellanox purchase, which came in just under $7 billion. This time, the structure looks different by design. The agreement is labeled a non-exclusive license, not a takeover. That setup follows a recent pattern across Big Tech. Companies are spending billions to bring in AI talent and hardware knowledge without triggering full merger reviews. Meta, Google, Microsoft, and Amazon have all used similar approaches. Nvidia used the same playbook in September when it paid more than $900 million to hire Enfabrica CEO Rochan Sankar and staff while licensing that startup’s technology. Cryptopolitan has analyzed that this format helps deals close faster, while also limiting direct antitrust exposure. Per data from Yahoo Finance, NVDA surged by 1.3% on Friday’s closing bell at $190.53, and the stock is up 42% this year and has climbed more than 13x since the end of 2022 when OpenAI first released ChatGPT. According to Nvidia’s last earnings report in Q3 2025, the most valuable company on earth holds $60.6 billion in cash and short-term investments, which is massively up from the $13.3 billion it had just 2 and a half years ago in Q3 2023. Nvidia is playing it smart with Groq deal; offense and defense Groq was founded in 2016 by former engineers, including Ross, who helped create Google’s tensor processing units, or TPUs, which some firms use instead of graphics processors. Groq focuses on inference, where AI models respond to new data. Nvidia controls most of the training side, where models learn from massive data sets. Cantor analysts said the deal lets Nvidia play offense and defense at the same time, writing that pulling Groq assets in-house prevents rivals from gaining access. The Howard Lutnick-owned company kept its buy rating and raised its price target to $300. BofA also kept a buy rating on NVDA with a $275 target, describing the Groq deal as surprising, expensive, and strategic. They also said that GPU dominance in training does not guarantee control of inference, which may need more specialized chips. Questions remain unresolved. Analysts asked who owns Groq’s language processing unit intellectual property. They also questioned whether that technology can be licensed to competitors and whether Groq’s remaining cloud business could undercut pricing tied to Nvidia’s LPU services. The next chance for public comments will likely come on Jan. 5, when Nvidia CEO Jensen Huang speaks at CES in Las Vegas. Meanwhile, these Magnificent 7 stocks are up 27% year-to-date, following gains of 107% in 2023 and 67% in 2024. Since early 2023, their shares are up 338% and drove 45% of the S&P 500’s 18% return this year. Their combined value now sits at $21 trillion, or 34% of the index, per data from S&P Global’s Dow Jones Industrial. Claim your free seat in an exclusive crypto trading community - limited to 1,000 members.

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Bitmain Mining Rigs Discount: Strategic Shift Amid Bitcoin’s Profitability Crisis

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BitcoinWorld Bitmain Mining Rigs Discount: Strategic Shift Amid Bitcoin’s Profitability Crisis BEIJING, March 2025 – Bitmain, the world’s dominant cryptocurrency mining hardware manufacturer, has initiated unprecedented discounting strategies for its flagship products. This move signals a profound shift in the Bitcoin mining ecosystem as operators globally confront shrinking profit margins. The company’s decision affects its entire product lineup, including the popular Antminer S19 and newer S21 series. Consequently, industry analysts view this development as a critical indicator of broader market pressures. Bitmain Mining Rigs Discount: Analyzing the Immediate Catalyst Bitmain’s discount announcement follows a sustained period of declining mining profitability. According to industry data from Cointelegraph, the current hash rate price has fallen below the minimum operational threshold for many mining operations. This metric represents the revenue generated per unit of computational power. Therefore, miners face difficult decisions about equipment upgrades and operational scaling. The company now offers significant price reductions across most inventory. Additionally, Bitmain has implemented an auction-based sales model for select products. This approach contrasts sharply with the fixed pricing typically maintained during bull markets. Historically, mining hardware manufacturers maintain stable pricing during industry expansions. However, the current market conditions necessitate aggressive inventory management. The Bitcoin network’s hash rate continues reaching new highs. Meanwhile, the Bitcoin price has remained relatively stagnant against rising energy costs. Consequently, mining efficiency becomes the paramount concern for operators. Bitmain’s response reflects these harsh economic realities. The company aims to stimulate demand during a cyclical downturn. Furthermore, this strategy helps clear existing inventory before next-generation hardware releases. Understanding the Mining Profitability Equation Bitcoin mining profitability depends on several interconnected variables. Operators must constantly calculate their break-even points. Key factors include electricity costs, hardware efficiency, network difficulty, and Bitcoin’s market price. Recently, the global average electricity price for miners has increased by approximately 18%. Simultaneously, the network difficulty has surged by over 40% in the past year. These combined pressures squeeze operator margins dramatically. The hash price metric provides the clearest profitability indicator. This value represents the expected daily revenue from one terahash per second of mining power. Currently, this figure sits near multi-year lows. The following table illustrates the changing economics for a standard mining operation: Metric 2023 Average 2025 Current Change Hash Price (USD/TH/s/day) $0.085 $0.052 -38.8% Network Difficulty 52.3T 86.7T +65.8% Global Avg. Electricity Cost (USD/kWh) $0.045 $0.053 +17.8% S19 XP Hydro Profitability (Est.) $12.50/day $4.20/day -66.4% These numbers explain the urgent need for hardware efficiency improvements. Newer mining rigs like the S21 series offer better joules per terahash ratios. However, their upfront cost previously created prohibitive capital expenditure requirements. Bitmain’s discounts directly address this barrier. The company effectively lowers the entry point for efficiency upgrades. Moreover, this move may accelerate the retirement of older, less efficient hardware globally. Such transitions typically benefit network sustainability long-term. Industry Expert Perspectives on the Strategic Shift Industry analysts interpret Bitmain’s actions through multiple lenses. Some experts view the discounts as a routine inventory cycle management tactic. Others see a strategic response to increased competition from emerging manufacturers. Companies like MicroBT and Canaan have gained market share recently. Consequently, Bitmain must defend its dominant position aggressively. The auction model introduction represents another significant development. This mechanism allows market forces to determine fair value dynamically. It also provides Bitmain with real-time demand data for production planning. Mining pool operators report increased interest in hardware upgrades following the announcement. However, they caution that discounted hardware alone cannot solve profitability challenges. Operators must secure low-cost, reliable power contracts. They must also navigate complex regulatory environments. Regions like Texas and Kazakhstan have become major mining hubs. These locations offer favorable conditions but face infrastructure and policy uncertainties. Therefore, hardware acquisition represents just one component of a successful mining strategy. The current downturn may trigger industry consolidation. Smaller operations may merge or seek acquisition by larger, better-capitalized entities. Historical Context and Market Cycle Patterns The cryptocurrency mining industry experiences pronounced cyclicality. Periods of explosive growth often follow technological breakthroughs or major Bitcoin price rallies. Conversely, extended bear markets test operator resilience and efficiency. The current situation mirrors previous downturns in 2018-2019 and 2022. During those periods, hardware manufacturers similarly offered promotions and adjusted sales tactics. However, the scale of Bitmain’s current discounting appears more comprehensive. The inclusion of flagship models like the S19 series demonstrates particular urgency. This series has represented the industry workhorse for several years. Previous cycles show that strategic hardware acquisitions during downturns can yield significant advantages. Operators who upgrade equipment during low-price periods position themselves optimally for the next expansion. Their lower capital costs translate into faster return on investment when conditions improve. Furthermore, efficient hardware provides operational flexibility during volatile energy price periods. The current discount window may therefore create a strategic buying opportunity for well-capitalized miners. However, timing the market cycle bottom remains challenging. Industry veterans emphasize focusing on long-term fundamentals rather than short-term price movements. Key considerations for operators evaluating Bitmain’s discounted rigs include: Total Cost of Ownership: Calculate purchase price plus estimated energy and maintenance costs. Hash Rate Efficiency: Compare joules per terahash across available models. Reliability and Warranty: Verify service terms and manufacturer support. Future-Proofing: Assess hardware lifespan against anticipated network difficulty increases. Resale Value: Consider secondary market demand for the specific model. Global Impact and Regional Variations Bitmain’s pricing strategy affects mining operations differently across regions. Areas with very low electricity costs, like certain parts of Latin America and the Middle East, may find the discounts particularly compelling. Their operational break-even points are lower, making efficiency upgrades more immediately profitable. Conversely, regions with high energy costs require more careful calculation. European miners, facing energy prices above $0.15/kWh in some areas, need extreme efficiency to remain viable. For them, even discounted hardware may not solve fundamental profitability issues. The discount announcement coincides with shifting geopolitical landscapes for mining. The United States has emerged as the dominant mining hub following China’s 2021 mining ban. American operators now control approximately 40% of the global hash rate. This concentration creates both opportunities and vulnerabilities. Bitmain’s discounts could further consolidate mining power among large, institutional American operators. These entities often have better access to capital and energy contracts. Meanwhile, smaller, decentralized mining operations face increasing competitive pressure. The industry’s evolving structure raises important questions about network decentralization and security. Technological Innovation and Future Hardware Developments Bitmain’s aggressive discounting may also signal impending technological transitions. The company typically reduces prices on current-generation hardware before launching new models. Industry rumors suggest next-generation 3-nanometer chip technology could arrive within 12-18 months. These chips promise another significant leap in energy efficiency. Consequently, miners must weigh discounted current technology against future advancements. Purchasing today’s hardware at lower prices makes sense if the equipment can generate positive returns before becoming obsolete. This calculation depends heavily on Bitcoin price projections and network difficulty forecasts. Manufacturers constantly balance innovation cycles with market demand. The current profitability crisis may accelerate research and development timelines. Companies need to deliver more efficient solutions to restore healthy industry margins. Beyond hardware efficiency, miners explore alternative energy sources and cooling solutions. Some operations now utilize stranded natural gas or integrate with renewable energy grids. Others implement immersion cooling technology to improve hardware longevity and performance. These innovations complement hardware advancements in the pursuit of sustainable profitability. Conclusion Bitmain’s decision to offer major discounts on mining rigs reflects deep structural challenges within the Bitcoin mining industry. The hash rate price decline below minimum profit margins has forced strategic adjustments across the ecosystem. While discounted hardware provides temporary relief for some operators, long-term solutions require broader efficiency improvements and favorable market conditions. The shift to auction-based sales models indicates a more dynamic, market-responsive approach from manufacturers. Ultimately, this period of consolidation and adjustment may strengthen the industry’s foundation. More efficient operations will emerge from this downturn, potentially benefiting the entire Bitcoin network through enhanced security and sustainability. The Bitmain mining rigs discount serves as a clear market signal, highlighting both current pressures and future transformation pathways. FAQs Q1: Why is Bitmain offering discounts on mining rigs now? Bitmain offers discounts primarily due to declining Bitcoin mining profitability. The hash rate price has fallen below many operators’ break-even points, reducing demand for new hardware. Additionally, the company likely aims to clear inventory before introducing next-generation models. Q2: Which Bitmain mining rig models are included in the discount? The discounts apply to most current products, including the widely used Antminer S19 series and the newer, more efficient S21 series. Bitmain has also moved some inventory to an auction-based sales model for dynamic pricing. Q3: How does the current mining profitability crisis affect small-scale miners? Small-scale miners face particular challenges as profit margins shrink. They often lack the capital for efficiency upgrades and may struggle with higher relative energy costs. Some may pause operations or sell equipment during this downturn. Q4: Could these discounts indicate a buying opportunity for new miners? Potentially, yes. Discounted efficient hardware lowers the entry barrier. However, new miners must carefully calculate total costs, including electricity and maintenance, against projected Bitcoin revenue. Success requires access to low-cost power and sound operational planning. Q5: What long-term impacts might this industry downturn have? The downturn will likely accelerate industry consolidation, with larger, more efficient operations gaining market share. It may also spur faster technological innovation as manufacturers compete on efficiency. Ultimately, a leaner, more resilient mining industry could emerge from this period. This post Bitmain Mining Rigs Discount: Strategic Shift Amid Bitcoin’s Profitability Crisis first appeared on BitcoinWorld .

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