Selling Your Used ASIC Mining Rigs
The challenges of selling used ASIC hardware in a bear market
The ASIC mining hardware market often behaves like a tempestuous siren on drugs. When the bulls are charging, it’s a “hodl-on-to-your-butts” ride upwards, but when the bears take over, every aspect of the mining sector feels the pain. Selling used ASIC miners during these downturns presents a unique set of challenges, made all the more pronounced with events like the nearing Bitcoin Halvening in 2024.
1. The Reality of Reduced Profitability
A fairly unique phenomenon to crypto mining, when the crypto market takes a massive dump, all miners simultaneously lose value. The main competitive edge that allows some miners to continue is access to cheap power paired with a cost-efficient setup to weather these conditions. Even so, budgets tighten even for the most winterized operation. This creates an extreme supply and demand dynamic which leaves the now unprofitable hardware without a ready market of buyers. The buyers that will buy during bear markets are often the most well-connected and sophisticated with access to many sourcing avenues with the cheapest pricing.
Additionally, the Bitcoin halving, a pre-programmed event in which the rewards for mining Bitcoin are halved, is a double-edged sword. On one hand, it tends to induce scarcity, which, historically, has been a precursor to price surges. On the other hand, it signifies an immediate reduction in profitability for miners. Miners will earn half of what they used to for the same amount of work and energy consumption, making many older ASIC models economically infeasible.
2. The Valuation Dilemma
ASIC miners’ valuations oscillate wildly, often in tandem with the broader cryptocurrency market’s ebbs and flows. In bull markets, high demand for ASIC miners can cause their prices to surge. However, in bear markets, particularly extended ones, the value of these devices plummets. This volatility isn’t just tied to the whims of coin prices; it’s also deeply rooted in the miner’s ability to turn a profit, typically with a lag, as market trends reverse and most experienced miners are wary.
3. The Narrow Scope of ASICs
Unlike GPUs, which have varied use-cases ranging from gaming to data processing, ASIC miners are application-specific by definition. This means that outside of their crypto-mining function, they don’t have much utility. In times when they aren’t profitable, the pool of interested buyers dries up rapidly. Selling becomes a challenge because a non-profitable ASIC device is essentially a fancy, power-hungry paperweight.
4. The Strategy: To Hold or Not to Hold?
Given the challenges of selling in a bear market, one viable strategy might be simply to wait it out. If you believe in the long-term potential of cryptocurrencies and the cyclical nature of markets, it might make sense to hold onto your ASIC miners until market conditions improve. This requires a longer-term perspective and a belief that what goes down will eventually come up. However, it’s a gamble, and one should be prepared for all potential outcomes.
5. Alternative Approaches
For those who can’t afford to wait, consider:
- Bulk Sales: Selling in bulk to resellers or businesses can sometimes yield quicker results, albeit at reduced prices.
- Parting Out: Some components of broken ASIC miners might still be valuable and can be sold separately.
- Recycling: If all else fails, ensure your ASIC miner is disposed of responsibly.
Conclusion
The bear market, combined with events like the halvening, can create a hostile environment for selling used ASIC miners. Yet, it’s crucial to remember that the crypto world is nothing if not resilient. Whether you choose to weather the storm or find alternative strategies, always stay informed, and make decisions based on both current market conditions and your personal financial situation.
Should I sell my ASICs to Bitpro?
Bitpro specializes in purchasing used GPU mining rigs. This is mainly due to the fact that we’re big proponents of GPU mining for reasons elaborated on in our article GPU vs. ASIC mining profitability. We are finding that many ASIC/GPU miners are now looking to upgrade their hardware to the latest gen and want to clear some space on their racks. ASIC mining hardware is a volatile market, but we hope to see that market stabilize now that Bitcoin volatility is trending down.
Selling ASIC Miners can be difficult if you’re not well-connected in the industry. Pricing can be somewhat nebulous and arbitrary. Many of the deals take place with an intermediary that connects buyers and sellers, which tends to drag the process out due to the level of complication and uncertainty. With Bitpro you’ll be working with a company that specializes in buying mining hardware quickly, safely, and hassle-free. That said, you should consider selling to us only if you are prepared to take the gut-punch of a low offer for your ASIC hardware. Unlike our offers for GPU mining hardware, which are tethered to the more stable resale value of the hardware, ASICs are inherently riskier and we need to account for that in our offers.
Which ASICs do we buy?
We are algo-agnostic. We will make offers on ASICs for any algorithm or from most manufacturers. It’s important to note that non-SHA256 ASICs are often very volatile in price, and we have to take that into account when putting together our offers.
| Bitmain / Antminer | Canaan / Avalon | Innosilicon / | MicroBT / Whatsminer |
| Nvidia CMP / 170HX | Goldshell | IBelink | Jasminer |
