S9 resurrection: Higher prices bring old Bitcoin mining machines back to life

As the price of Bitcoin hovers around a certain level, older ASIC mining machines produced many years ago are starting to become profitable again. Reports show that Chinese Bitcoin miners have found that outdated mining machines, such as the Antminer S9 (10-16 TH/s), are now profitable again.

The price of Bitcoin (BTC) has made it easier for cryptocurrency miners around the world to turn a profit, especially after the recent drop in mining difficulty, which fell by more than 16%.

Additionally, BTC prices closed at a high of $16,305 per coin, up 41.19% after jumping from the closing price of $11,548 on October 13, 2020, and the 30-day closing price on November 12. Regional reports from China show that high BTC prices (between $12,000 and $16,000) have prompted Chinese miners to start repurposing old mining machines.

In addition to the profitable S9 models, older machines produced by Canaan Creative, Bitfury, GMO, Bitfily, Whatsminer, Halong, Ebang and Pantech are also profitable at higher Bitcoin prices. At the time of publishing, the two 2018 series Avalonminers (921 and 841) are profitable between $0.21 and $0.59 per day if miners pay about $0.06 per kilowatt-hour (kWh).

Financial columnist Vincent He recently discussed the Bitmain S9 series (10-16 TH/s), noting that today’s mining machines are making profits for Chinese miners. The author noted on November 11: “The price of electronic components rose at the end of the year, resulting in a shortage, which led to an improvement in the cost performance of the S9.”

With Bitcoin prices so high, old mining equipment is making money these days. Many mining farms are located in dusty desert areas, and some are located in areas like Sichuan with above-average humidity. These effects “shorten the lifespan of the machines,” and mining equipment like “S9, due to its simple structure and relatively low computing power, has better stability.” It is estimated that at one point, these four-year-old machines provided about 70% of the hash rate for the entire Bitcoin network, with S9 miners (13 TH/s) so widely used.

About 11 Antminer S9 models manufactured by Bitmain (between 1-4 years old) are worth $0.06 per kilowatt-hour (kWh), with profits ranging from $0.10 to $0.59, based on the BTC exchange rate on Friday, November 13, 2020.

BTC prices fell on Friday, November 13, a bit lower than the previous day’s close. However, data from Asicminervalue.com suggests that many older mining rigs made by Avalon, Bitmain, and others are making a profit at an electricity price of $0.06 per kilowatt-hour. Today, each Bitmain Antminer S9 has a hash rate between 10 and 16 terahashes per second (TH/s).

Many previous generation miners are available for as little as $100, depending on the model and hash rate. Marketplaces such as Ebay and Craigslist have a large number of miners for sale from manufacturers such as Avalon , Bitmain, Microbt, Ebang, and many others.

Similarly, three generations of old miners created by Avalon also showed profits, in addition to the Avalonminer 821 and 741 series. In addition to the popular S9 and Avalonminers, outdated ASIC mining equipment produced by Bitfury, GMO, Bitfily, Whatsminer, Halong, Ebang, Pantech and others also showed profits.

In the second-hand markets in the United States and Europe, the prices of old mining machines in second-hand markets such as Ebay and Craigslist have also increased.