Foundry Launches Resale Marketplace for Bitcoin Mining Machines

Its new business, FoundryX, has already secured more than 40,000 miners that are ready for resale through 2022.

AccessTimeIconDec 8, 2021 at 10:35 p.m. UTC
Updated May 11, 2023 at 7:09 p.m. UTC
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Digital asset mining and staking firm Foundry Digital has launched FoundryX, a new marketplace for buying and selling bitcoin mining machines, the company announced Wednesday. Foundry is a subsidiary of Digital Currency Group, which is the parent company of CoinDesk.

“With the industry’s leading clients and partners, from machine manufacturers to mining companies, we have the market knowledge and data to match the right buyers and sellers, at the right price,” Foundry Vice President of Business Development Jeff Burkey said in a statement.

The company has secured over 40,000 of the latest-generation mining machines from MicroBT and Bitmain for immediate delivery through 2022 for the new marketplace. For now, the company will be providing new machines only that it has sourced from manufacturers, Foundry’s own inventory, its network of resellers and its existing clients, according to a statement emailed to CoinDesk.

New push

FoundryX is aimed at small, mid- and large-scale miners looking to upgrade or expand their operations, but is not designed for small-scale retail clients. “However, we do support several companies that offer services to retail and are proponents of fully decentralized networks,” according to the email.

The move comes as supply-chain bottlenecks and global chip shortages have made it difficult for North American miners to secure machines from Asia in a timely fashion.

Foundry also noted that some resellers, including those in Asia, require significant wire deposits to reserve machines, which has made the process even more challenging for potential customers. Foundry’s new business will work to address these issues by connecting buyers and sellers via a “trusted and reliable U.S.-based secondary market for mining machines,” the company said.

The main advantage for a client ordering mining machines through FoundryX is the ability to customize the size and payment terms based on their needs, Foundry’s spokesperson said. Typically, manufacturers require monthly minimum commitments and large deposits six months or longer prior to delivery, whereas with the new marketplace customers will have more flexibility, the spokesperson said.

In November, Compass Mining, a bitcoin mining service provider, also launched a secondary resale market for retail mining customers to sell bitcoin mining hardware. The company’s CEO, Whit Gibbs, said that hundreds of millions of dollars in miners are being sold on the secondary market every month, indicating high demand.

Foundry has already completed over $125 million in hardware sales this year, prior to officially launching the marketplace business today.

Foundry said that its existing clients can also request additional enterprise-grade services which include financing, shipping, logistics and pooled mining through Foundry USA Pool.

Foundry’s North America-based bitcoin mining pool represents about 16% of the network’s total hashrate, according to network data collected by BTC.com.

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CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Aoyon Ashraf

Aoyon Ashraf is managing editor with more than a decade of experience in covering equity markets


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