Stash of ASIC devices by Crypto Miners in Russia Amid Dip

The Recent Scenario

Russia’s cryptocurrency miners are going against the wave of the ongoing crisis of crypto mining as the supply of mining hardware is lagging behind as seen in the fourth quarter of 2022.

Recently, the regional media sources reported that few Russian crypto mining hardware suppliers have noticed a sharp hike in the demand of mining-centered application-specific integrated circuit (ASIC) chips.

ASIC is an integrated circuit that facilitates the solving of specific problems, including few structures utilized in the process of crypto mining. They serve solutions for a limited number of functions when compared to conventional integrated circuits, which are little reasonable in price and faster in performance.

Regional dealer Chilkoot has its ASIC sales of October and November left behind the total sales of third-quarter. Estimated 65% greater number of hardwares are sold in a period of nine months as compared to 2021.

Artem Eremin, Development manager of the Chilkoot by 3Logic Group distributor, stated “We are working with legal entities and we see that they began to buy 30% more equipment in one transaction than at the beginning of the year.”

Russian based crypto mining-centered data center, BitRiver has noticed a significant hike in the demand of over 150% in the period ranging from January to November 2022. Demand of ASIC devices has also skyrocketed due to the proportional increase in specialized computing devices for crypto mining in the fourth quarter.

The supply of less expensive equipment might soar in the near future due to the many large foreign mining companies leaving the market in noticeable numbers.

What Analysis Analyzed?

Financial analyst at BitRiver Vladislav Antonov, remarks that the recent market situation will indirectly be advantageous for the industrial mining markets at last. According to Antonov, the supply required for the ASIC equipment will be needed in large numbers as the decrease in purchase prices is seen in the wholesale segment.

Vladislav explains that the purchase price is matching nearly to that of cost of production, which can serve as the better point for investors. Additionally, Chilkoot reports that the cost of mining has decreased from 20% within the period of August to October. Also, prices have “fixed and are not dropping lower” from October.

According to the media reports, Mikhail Brezhnev, co-founder of 51ASIC noted the price of most modern equipment at $0.07 per 1 kWh, whereas the cost required to produce 1 Bitcoin (BTC) is almost over $11,000. However, Antonov highlights that BTC mining in the low market “could yield significant profits in the form of tens of percent over a three-year horizon.”