Bitmain Partially Refunds Bitcoin Miner Buyers After Price Cuts

The Beijing-based firm is sending out cash coupons to customers who pre-ordered its latest bitcoin miners ahead of recent price markdowns.

Apr 14, 2020 at 9:46 a.m. UTC
Updated Sep 14, 2021 at 8:28 a.m. UTC

Beijing-based Bitmain is handing out cash coupons to compensate customers who ordered its latest bitcoin mining machines ahead of recent price markdowns.

Bitmain said Tuesday that buyers of its AntMiner S17+ and T17+ devices with delivery dates between mid-February and the end of April will receive coupons worth from $17 to $272 per unit – a move that reflects the lasting impact of last month’s crash in bitcoin prices and the expected mining revenue drop due to bitcoin’s halving event in May.

For instance, for buyers who received their AntMiner S17+ pre-orders in late March, Bitmain will compensate them with coupons worth around $240 per unit. For those who have received or will receive their AntMiner S17+ throughout April, the partial refund will be around $270.

The coupons, which can only be used when purchasing additional goods at Bitmain, also signal tougher market conditions for the sales of mining equipment currently – a factor likely to decrease Bitmain's revenue and increase liabilities on its balance sheet.

For context, Bitmain typically sells its newest miners based on a pre-order model, with customers paying full retail price upfront for a delivery that will take place usually two or three months later.

As such, those who received their AntMiner S17+ delivery in early April might have originally paid well above the current price of the device. All miner manufacturers have been marking down their prices following the March 12 crash and with the halving arriving soon.

As an example, Bitmain was advertising a price of $1,567 per unit for the AntMiner S17+ earlier this month (although some resellers at the time were already quoting a price of around $1,300). The firm has now adjusted the official price on its website to $1,320, representing a 15.7-percent markdown.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
5 Key Takeaways From a16z's State of Crypto Report

The venture firm is extremely bullish on Web 3.

The venture firm is extremely bullish on Web 3.

CoinDesk - Unknown
2
CoinDesk - Unknown
Regulators Are Paying Attention to UST

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

The collapse of terraUSD (UST) is algorithmic stablecoins’ Libra moment.

CoinDesk - Unknown
3
CoinDesk - Unknown
San Francisco NFL Player Alex Barrett Taking His Salary in Bitcoin

The most valuable crypto stories for Thursday, May 20, 2022.

The most valuable crypto stories for Thursday, May 20, 2022.

CoinDesk - Unknown
4
CoinDesk - Unknown
Justin Sun Still Thinks Algorithmic Stablecoins Are a Good Idea

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

The crypto mogul also said LUNA and UST might make good "meme coins," he said on CoinDesk TV’s “First Mover.”

CoinDesk - Unknown