‘How many kilos of crypto mining equipment are for you, Sir?’ This is the new transaction process happening in China as crypto value started its bullish rate and developed a frightening loss of investments for many companies.
According to the report from local news site 8BTC, since the market of crypto continuously dropping this year, businesses related to the field also struggles to overcome these losses. In China, several crypto-related companies and firms decided to shut down for good as the expenses were higher than their returned investments. As a matter of fact, some of them decided to make more profit in selling their mining equipment in the most ideal way.
Chinese miners were said to be selling their old crypto mining machines not even through with its original half price but through its weight.
Too Much Losses
As reported, mining equipment such as Antminer S7, Antminer T9, and Avalon A741 were being sold with the price per kilogram. This fact, was admitted by few Chinese companies stating that the old models were much harder to sell especially with the current standing of crypto. As a way of having some profit, they are being sold in kilograms in order to attract more buyers. For example, a machine that was bought for its original amount of 20,000 yuan ($2,885) are now being sold equivalent to 1,000 yuan ($144).
Although the values were too low with its original price, these transaction values were actually fair — according to experts. Since these are the old models of crypto mining equipment, it is only profitable to sell it with a much lower price since no one will actually buy it with its original or even half price.
Interestingly, as also explained by them, these numbers did not happen due to crypto’s bullish rate alone but because they are old models not needed by anyone.
“Almost no one, with good reason, is willing to buy secondhand fans and PSUs from miners. I wouldn’t buy parts from a mining rig even at an 80% discount,” comment from one Reddit user.
Various crypto companies were experiencing terrible fall backs from their investments in crypto, however, they were all dealing these losses with different plans and approaches. Still, business is business and if its not working anymore, maybe its time for businesses to deal with it ‘per kilo.’