The cost of making Avalon miners has declined
Can we expect the same for AntMiners and WhatsMiners?
After a bearish 2022, the selling prices for different generations of bitcoin ASIC miners remain mostly at historical lows—despite the recent bitcoin price rebound.
Typically the selling prices of bitcoin ASIC miners follow the price of BTC itself, which affects the demand for mining equipment. But after years of technological development, it appears that the cost of making bitcoin ASIC miners has also declined – at least in the case of Canaan – leaving more potential room for bargains.
According to TheMinerMag’s analysis of Canaan’s annual report released this week, the manufacturer’s cost of goods sold (COGS) for each generation of its Avalon bitcoin ASICs from the A7 to A13 series has declined from $50 per TH/s to $12 per TH/s. That means each new generation of miners has not only improved the mining efficiency but also at a lower COGS as the chip process technologies mature and the sales volume grows.
The declining COGS could leave the manufacturer with more leeway to squeeze the gross margin when the demand for new mining equipment is low.
For instance, Canaan’s main revenue generator in 2020 was the A10s. The average selling price and cost of A10s were $9.41 and $22.8, respectively, which means Canaan incurred a gross loss of $13.4 for every TH/s of A10s sold. However, the selling costs of A12s – the main sales driver for 2022 – and the newest A13s declined to $14.26 and $12.06 per TH/s respectively.
The interesting question now is to what extent this trend of declining COGS applies to Bitmain and MicroBT and if so, will the ASIC prices get even cheaper as the bitcoin network moves closer to the next halving?
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