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You are right. However even sunk costs have been recovered very quickly lately. To give an idea: an S9 deployed in early November has already fully recouped its

by mrb 9y ago

You are right. However even sunk costs have been recovered very quickly lately. To give an idea: an S9 deployed in early November has already fully recouped its cost ($1500 in 40-60 days).

ekiara 9y ago
Honest question (I have no actual ASIC experience, I'm just curious) Where are you getting the USD1500 price tag, I've just done a quick search and I only found a bunch of S9 Miners (Bitmain Antminer S9) advertised for over USD6000 on Amazon.
- mrb 9y ago
  The batches sold and shipped in Nov were priced $1500. That was the price when buying directly from bitmain.com. Since then Bitmain hiked the price: the latest batch released yesterday (now sold out) was priced $2300. But yeah, since Bitmain's batches sell out in minutes, S9s often reach ~$5k in unofficial resale channels.
thelittleone 9y ago
In that case, wouldn't it be more profitable for Bitmain to keep what they make and mine coins themselves?
- SmallDeadGuy 9y ago
  It is if they want to bet on the value of bitcoin. Why use some hardware for 40-60 days to mine some coin which may or may not be worth $1500 when you could sell immediately for that amount? Sure you can mine for longer, but I'd bet they have more stable returns by investing profit from sales back into the business for fast/cheaper manufacturing, expanding their area of operations, etc.
- rk06 9y ago
  "During the gold rush its a good time to be in the pick and shovel business" - Mark Twain the same analogy applies here, BitCoin mining is quite profitable, however hardware business is more reliable and in demand.
- samolang 9y ago
  Pretty sure they do. https://www.reddit.com/r/BitcoinMining/comments/7jg14f/one_of_my_new_farms_being_set_up_in_china/dr89t65/ https://www.reddit.com/r/BitcoinMining/comments/7jg14f/one_o...
- mrb 9y ago
  Yes, and they operate a decent amount of mining farms. However mining comes with a certain risk (eg. Bitcoin could crash) which is eliminated when selling the hardware right away. They can also manufacture hardware a lot faster than they can deploy data centers.

by mrb 9y ago

You are right. However even sunk costs have been recovered very quickly lately. To give an idea: an S9 deployed in early November has already fully recouped its cost ($1500 in 40-60 days).

ekiara 9y ago

Honest question (I have no actual ASIC experience, I'm just curious) Where are you getting the USD1500 price tag, I've just done a quick search and I only found a bunch of S9 Miners (Bitmain Antminer S9) advertised for over USD6000 on Amazon.

mrb 9y ago
The batches sold and shipped in Nov were priced $1500. That was the price when buying directly from bitmain.com. Since then Bitmain hiked the price: the latest batch released yesterday (now sold out) was priced $2300. But yeah, since Bitmain's batches sell out in minutes, S9s often reach ~$5k in unofficial resale channels.

thelittleone 9y ago

In that case, wouldn't it be more profitable for Bitmain to keep what they make and mine coins themselves?

SmallDeadGuy 9y ago
It is if they want to bet on the value of bitcoin. Why use some hardware for 40-60 days to mine some coin which may or may not be worth $1500 when you could sell immediately for that amount? Sure you can mine for longer, but I'd bet they have more stable returns by investing profit from sales back into the business for fast/cheaper manufacturing, expanding their area of operations, etc.
rk06 9y ago
"During the gold rush its a good time to be in the pick and shovel business" - Mark Twain the same analogy applies here, BitCoin mining is quite profitable, however hardware business is more reliable and in demand.
samolang 9y ago
Pretty sure they do. https://www.reddit.com/r/BitcoinMining/comments/7jg14f/one_of_my_new_farms_being_set_up_in_china/dr89t65/ https://www.reddit.com/r/BitcoinMining/comments/7jg14f/one_o...
mrb 9y ago
Yes, and they operate a decent amount of mining farms. However mining comes with a certain risk (eg. Bitcoin could crash) which is eliminated when selling the hardware right away. They can also manufacture hardware a lot faster than they can deploy data centers.