Thread by @SinoCrypto

Updates from calls with #bitcoin mining colleagues in China and what we’re seeing at @FoundryServices

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1) Sentiment is obviously quite dreary and the reality is setting in that it’s GG for mining in China. Some mining friends have stuck around Sichuan since the Bitmain conference to drink their sorrows away. Now… 酒都不想喝了 - “not even in the mood to drink anymore”

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2) They estimate that roughly 70% of the #bitcoin mining capacity in China has gone offline and by the end of this month, it’ll be closer to 90% offline.

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3) In the most extreme cases, some colleagues in Kangding, Sichuan have been instructed by the power plants/stations they have installed their mining facility on to remove ALL infrastructure (low-medium voltage, racks/shelving, containers, etc…) with 1-2 weeks notice

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4) Having to remove all of their infrastructure equipment is just an extra kick in the nuts, especially considering most of the operations (especially the larger ones) received the proper assurances and permitting to run their operations

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https://twitter.com/WolfieZhao/status/1405814797199892484

5) Before resellers and opportunists get way too ahead of themselves for scooping up discounted electrical equipment, they should consider that most of the gear wont be up to code for established Western countries (not UL Listed or CE Certified, aluminum transformers vs copper)

6) Which leads to my next point that the “Great ASIC Exodus” will be anything but seamless… Hosting capacity outside China was already oversubscribed and scarce prior to these regulatory announcements. Additionally, expectations for hosting terms are greatly MISALIGNED

7) Examples of misaligned expectations:

Pricier Hosting Costs - $0.06+ and rising

Longer lead times - 6-9 months to build

Deposits - Chinese hosting clients rarely pay more than 1 month upfront, if anything at all

US/China Tariffs - yeah, that 25% whammie is still there

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8) Not all Chinese miners were caught with their pants down though… Some have been gradually expanding their mining ops overseas for some time now. This process only accelerated with the Inner Mongolia ban earlier this year

https://twitter.com/WolfieZhao/status/1406478803350831107

9) Chinese miners have been quick to mobilize… one colleague sent some technicians down to Shenzhen, to focus on 2nd hand miner testing, repair, cleaning, and repackaging for exportation. He has cleaned and shipped out over 20,000 ASIC’s in the last 2 weeks

10) This isn’t the end. Whatever doesn’t kill #bitcoin, will make it stronger.

I was chuckling with some colleagues earlier because we are still so early… the MSM was chomping at the bit to report 6600lb’s of ASIC’s being shipped. That’s a little over 200 ASIC’s 😑

https://twitter.com/Mason_Jappa/status/1407129100934909955

Hope you guys found this helpful!