Bitcoin miners in China are facing one of their most testing periods as authorities in the Asian country have maintained their hostile stance towards the industry. This has led to a mass exodus of these miners to greener pastures in their search for more favorable regulations and environment for their business.
Already, some of the miners in the country have begun selling their hardwares while a huge chunk of them are migrating their data centers to more crypto mining friendly countries. According to a report from Bloomberg, one of the biggest challenges that these miners are currently facing is the lack of data center storage spaces.
These huge sell off plus the ongoing migration has led to many of these mining rigs being offline thereby allowing miners who still have their machines running earn more. Also, the reduced numbers of miners in the space has led to a decreased level of Bitcoin mining difficulty.
Like we already reported, “figures from Blockchain.com have revealed that Bitcoin miners revenue has increased by about 50 percent after one of the biggest drops in the mining difficulty of the leading digital asset.”
This increased level of revenue and productivity has made the values of data centers rise exponentially. Meltem Demirors, chief strategy officer at CoinShares, when talking about the dearth of these centers said that “Machines are no longer the bottleneck, hosting facilities are. You just can’t build a massive co-location data center in a few months.”
Available information has shown that some Chinese miners are paying over 5 cents per kilowatt-hour premium, with some of them willing to pay as high as 9 cents to get back into business. Should this increased demand for data centers be met, it could lead to a return to normalcy in the crypto mining space.