Bitcoin miners await refurbishment of mining equipment

Author: Nynu V Jamal, Coinedition

According to recent Bloomberg reportReport, More than 6,000 outdated Bitcoin mining equipment in the United States will are updated and resold to miners around the world. BitcoinIn anticipation of the upcoming halving, this new development aims to help mining companies gain profits during the halving event.

Refurbishment of the machines will reportedly take place at a warehouse in Colorado Springs. The equipment will then be resold to miners in various countries, especially in countries with lower electricity costs such as Africa and South America.

The move was led by Canadian hardware trader and distributor Sunnyside Digital. Sunnyside Digital CEO Taras Kulyk admitted it was a "natural migration." He claimed that while electricity is a key aspect of Bitcoin mining, miners seeking a low-cost environment were common, especially before Bitcoin mining was the mainstream income for miners.

Kulyk said that over the past few years, he has resold refurbished computers to miners in Ethiopia, Tanzania, Paraguay and Uruguay. Commenting on the increased demand for such devices during the halving, he added, "The halving accelerated this trend."

Bitcoin Halving, The company is splitting the halving bonus in half, reducing the current £6.25 to £3.125 during the upcoming halving in April 2024. Although the halving event occurs every four years, Bitcoin miners are still waiting for this event to generate profits.

Older model computers such as the S19 series may not be profitable to run in the United States. However, Jaran Mellerud, CEO of Dubai-based Hashlabs Mining, said the computers could "generate significant profits and extend their useful lives" if hosted in parts of Africa.

According to reports, the price of older S19 computers has plummeted from $7,030 in March 2022 to $900 in March 2023. In March 2024, the price fell again to nearly $427, and miners expected further price declines.