- Almost 250,000 to 500,000 mining rigs are still sealed and packed in the U.S.
- North Star Computer filed bankruptcy in September
- The Crypto market is facing continuous downfall, which is leading to a rise in the prices of bitcoin mining equipment
The continuous fall of top cryptocurrencies has affected the crypto market badly. The ongoing “crypto winter” has been very rough for investors. There was a continuous downfall of all the top cryptocurrencies like Bitcoin and Ethereum. The equipment used for mining was also very expensive, and the manufacturers could not meet the requirements of expensive crypto-mining equipment till last year.
Now there has been a very shocking revelation by Matt Schultz, who is executive chairman of bitcoin miners clean spark (CLSK); according to him, there are almost 250,000 to 500,000 mining rigs that are still sealed and packed in the U.S. And confirming the total numbers which are 276000 of these unused brand new machines Ethan Vera who is a chief operating officer of mining service firm Luxor technology.
Luxor’s Vera also added that “limited rack space immediately available” its been already a year since, in May 2021, china banned crypto mining totally because of the environmental concern and sent the miners flocking to the U.S and Kazakhstan, which directly allowed the companies of the country that have not banned the crypto mining from boosting their respective fees.
The shocking news was North Star Computer Inc filed for bankruptcy in September. North Star Computer Inc is an American computer company founded in 1976 by Mark Greenberg and Charles Grant; they are the most effective computing in the world and run data centers that host mining computers.
The continuous falling prices of cryptocurrencies are directly leading to a rise in the prices of mining rigs. Mining rigs are the heavy pieces of machinery and computers used for crypto mining g, and they require a lot of energy to function, and at the same time, they are quite expensive.
Experts about the reason behind the “sealed packed” mining rigs
After the news about the thousands of machinery under the box packed, many experts said there is no room for them in the data center. Meanwhile, according to other experts, the ongoing critical condition of the crypto market and the machinery are very expensive; that’s why no one is buying them, which leads them to packed boxes.
Core scientific (CORZ) CEO Mike Levitt said in an interview that “the company has been able to revise its pricing structure for its hosting fees base rate as demand for racks has surged. Core scientific (CORZ), formerly power, and digital infrastructure Acquisition corp, was founded in 2017 by Denise Sterling.
Source: https://www.thecoinrepublic.com/2022/10/23/thousands-of-bitcoin-mining-rigs-are-sitting-unused-in-packed-boxes/