Bitmain, the world’s leading designer and manufacturer of application-specific integrated circuit (ASIC) chips and hardware for cryptocurrency mining, has announced a significant price reduction for several types of equipment used in cryptocurrency mining. This decision by the China-based company comes in response to the growing challenges faced within the mining industry.
In a recent statement, TheMinerMag, a specialized digital publication focused on the Bitcoin mining industry, reported that Bitmain has introduced bundle deals and discounts across a variety of models. Among these, the company’s well-known Antminer S19 and S21 series of ASIC mining machines are included. These machines, which are typically viewed as top-tier options, have been made more accessible as the mining landscape shifts.
As we look ahead to early 2025, it’s noteworthy that these machines, which could have been perceived then as having “distressed sales,” represent a drastic change from when Bitcoin prices were on the rise. The mining sector is witnessing an evolution, dictated not just by technological advancements but also market fluctuations.
Uncertainties Surrounding the Mining Industry Spark Tension in the Sector
Following TheMinerMag’s report, sources indicate that even some of the newly launched high-end mining hardware, such as the S21 immersion-cooled ASICs, are now being sold with discounts of about $7 per terahash-second (TH/s). The remarkable aspect has been the auctioning of bundles, allowing miners to determine their preferred prices based on their own valuation.
Such price reductions come during a tumultuous period where profit margins are under pressure in the mining industry. For instance, the current state of the hashprice—a vital Bitcoin mining metric indicating the expected dollar revenue per unit of hashing power—has plummeted to approximately $35 per terahash/second per day (TH/s/day). This is a low mark not seen in years.
It’s important to highlight that a break-even point of around $40 per TH/s/day is commonly accepted among miners. Given this scenario, several operators might contemplate halting their mining activities until more favorable economic conditions arise. This consideration reflects a growing angst in an already challenging economic landscape.
Reports highlight that the current climate is exacerbated by multiple factors: a declining Bitcoin market, rising energy costs, regulatory hurdles, and supply chain risks. The mining sector’s competitiveness is further marred under these circumstances.
In light of these mounting pressures, mining firms are actively seeking alternative strategies. One promising avenue being explored is the increased use of renewable energy sources to help mitigate costs, especially following the halving event slated for April 2024, which is set to reduce the Bitcoin block reward to 3.125 Bitcoin per block, complicating profitability for many miners.
Analysts Express Disappointment After Noting 2025 as an Amazing Year for BTC
Despite high expectations, analysts have expressed disappointment with the cryptocurrency landscape as 2025 comes to a close. Initially heralded as an outstanding year for Bitcoin (BTC), the reality has not lived up to those anticipations. During the year, BTC prices saw a drastic decline from a high of over $126,000 in October to a low of around $80,000 in November.
According to recent reports from CoinMarketCap, BTC is currently over 7% lower than its starting price on January 1 of this year, and approximately 20% below its peak of over $109,000 observed on January 20, a date that also coincides with the inauguration of US President Donald Trump.
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