Bitcoin ASIC Market Recovers as New-Gen Rigs Rise and S19 XP Prices Drop

The Bitcoin mining sector has been gradually recovering from 2022’s bear market, with ASIC miner prices stabilizing and rebounding in Q1 of 2023. Miners are taking advantage of yearly-low ASIC prices and favorable hashprices to reinvest their profits into new hashrate as the 2024 halving approaches.

Luxor RFQ, an auction-style ASIC marketplace, has traded over 2.56 EH of hardware since its launch, with 1.18 EH purchased in April alone. Insights from the platform reveal that the newly shipped Antminer S19J Pro+ model from Bitmain is generating excitement. Producing 20% more hashrate than the original J Pro and boasting an efficiency of 27.5 J/TH, the S19J Pro+ has a smaller price premium compared to the S19 XP.

The S19 XP has experienced a 42% price decline year-to-date, with premiums falling as more competitive models like the Antminer S19 Pro+, Antminer S19e Pro, and Antminer S19K Pro enter the market. Assuming a power rate of $0.07/kwh and an average hashprice of $75/PH, the Antminer S19j Pro+ is expected to have a return on investment (ROI) in less than a year and a half, while the S19 XP has a 30% longer ROI period due to its current price premium.

Bitcoin ASIC Price Index 6 month view | Source: Hashrate Index

In April 2023, most shipments from Luxor’s RFQ marketplace were destined for North and South America, with many operators diversifying into Latin America, particularly Paraguay, due to ongoing regulatory challenges in North America. Notably, shipments to China are also increasing as the country’s Bitcoin mining industry rebuilds despite the government’s 2021 ban.

Whether the Antminer S19 XP’s prices will continue to fall or rise depends on Bitmain’s promotional price campaigns and the flow of new hardware from the manufacturer to resellers. Bitmain currently has no plans to release anything more efficient than the S19 XP this year but may start shipping the Antminer S19K Pro, which has next-gen efficiency, in Q2 if there is sufficient interest.