Chinese Bitcoin mining rig maker Bitmain Technologies Ltd. has suspended sales of new equipment after supplies were flooded into the market by miners exiting the country’s crackdown, Bloomberg reported.
- A company official confirmed that Bitmain will continue to offer products used to mine smaller digital coins in the future, but did not give a timeline for the resumption of business.
- The company could benefit from the suspension if the cut down on supply will translate to higher prices in the long term. Top-tier rigs have dropped 75% in the past two months. This could also help miners leaving the country profit from their equipment.
- Bitmain last week met with hundreds of miner clients in Chengdu, commiting to connect them with data centers in countries open to operations such as the United States and Kazakhstan.
China’s State Council last month reiterated its clampdown on Bitcoin trading and mining, forcing miners to exit the country. BTC/USD is up 14.39%.