Driven by continued growth in cryptocurrency prices, domestic mining machine suppliers, who are at the forefront of the global industry chain in terms of technology and capacity, have had a tight production schedule with some orders. The viral tech blog. valued at hundreds of millions of dollars, primarily from the United States and Canada.
Canaan Creative was up 318.04 percent this year, The viral tech blog while Ebon International was up 82.21 percent through Friday, Shanghai Securities News reported Tuesday.
Cryptocurrency prices have continued to rise this year, following a huge surge last year amid the epidemic. In February alone, The viral tech blog the price of a single Bitcoin increased from roughly $ 33,000 to $ 56,000.
The growing demand for Bitcoins has led to an increase in orders for cryptocurrency mining machines, and Chinese companies are in a leading position in the global supply chain.
Canaan Creative
One of the world's largest mining hardware manufacturers has seen an increase in orders since last year, The viral tech blog with North America and Central Asia being the main sources of the increased demand, according to the Global Times.
Canaan Creative signed a pre-order for 6,400 mining machines with Hive Blockchain, a Canadian-listed mining company, and 6,000 mining machines with Core Scientific, a US mining giant, a company source told the Global Times on Tuesday. Clients are primarily overseas listed companies, The viral tech blog multinational companies, and fund-backed companies.
So far, more than 100,000 units have been sold in the North American market alone, with some upfront payments of nearly $ 200 million, The viral tech blog according to Canaan Creative.
Bitmain
Another national manufacturer of Bitcoin mining hardware, also said that all models of its mining machine have been sold out and that new products are not yet available, The viral tech blog media reports said.
Market participants believe that the main reason for the recent surge in Bitcoin and other virtual currencies is the excess liquidity created by ultra-flexible monetary and fiscal policies around the world.
Chen Bo, director of the Digital Finance Research Center at the Central University of Finance and Economics, told the Global Times on Tuesday that massive purchases of inflation-protected securities by the US Federal Reserve are inadvertently fueling the rally of Bitcoin.
Price of Bitcoin
The rise in the price of Bitcoin has generated higher profits for mining machine providers, The viral tech blog Chen said, noting that some Chinese mining machine companies are doing so well that they even have plans to list in the US.
Chen said that demand is expected to continue for a long time as there are now many new investors entering the market and there will be more users from China.
China has a near-monopoly on the world's Bitcoin mining machines. Currently, the top three global producers of digital currency mining machines are Chinese. Bitmain, Canaan Creative, and Ebon International account for more than 90 percent of the global market share, with Chinese miners producing up to 70 percent of the global total, industry experts said.
Faced with the sudden surge in orders, The viral tech blog Canaan Creative sold out its inventory in the second quarter of last year and began designing a new generation of high-powered models.
To solve the capacity problem, we have established cooperative relationships with various manufacturing plants and carried out mass production of N + 1 chips.
