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Bitcoin mining providers agency Luxor Applied sciences is beginning the business’s first unified market for new mining machines in order that consumers and sellers can instantly join via a request-for-quote system (RFQ). The crypto mining market is flooded with inventory offloaded by struggling corporations.

{The marketplace} comes when 1000’s of discounted machines have additional overwhelmed an already inundated market. In 2022, the business didn’t have sufficient infrastructure to plug machines into and begin bringing in income, so lots of of 1000’s of machines had been left unused.

Because the bear market hit the sector, miners began promoting extra machines, additional miserable costs. The worth of mining rigs has dropped about 85% up to now 12 months, knowledge from Luxor reveals.

Within the new platform consumers and sellers can create requests for machines in an open-bid system and instantly negotiate costs. Presently, the market operates primarily via brokers, together with Luxor. That’s an an “opaque and regionally fragmented market” that Luxor’s RFQ system will unify, thereby “improving price discovery and increasing liquidity in the secondary market,” the agency stated in Wednesday press launch.

Compass Mining additionally aggregates listings for mining rigs on sale on a separate platform. Nevertheless, the amount is small, with listings largely ranging between one to 10 machines.

Brokers can signal as much as the platform and Luxor will basically cease appearing as a dealer. Luxor will take a fee from the occasion that responds to the request, whether or not it’s a vendor or a purchaser, which may also encourage market making on the platform, stated Colin Harper, head of content material and analysis at Luxor.

About $1.6 million value of offers have closed up to now on the primary day of the platform’s operation.

Luxor's RFQ platform promises to unify the marketplace for bitcoin mining machines. (Luxor)

Luxor’s RFQ platform guarantees to unify {the marketplace} for bitcoin mining machines. (Luxor)

Bankruptcies of giants within the area together with Celsius Mining and Core Scientific may imply extra mining rigs for sale.

Story continues

“Before, buyers and sellers relied on a patchwork of venues to buy and sell mining hardware. Now, they can observe offers, listings and settlement prices all in one place, which improves pricing transparency and expedites the mining hardware procurement process,” Luxor Operations Supervisor Lauren Lin stated within the press launch.

Learn extra: A Enormous Glut of Bitcoin Mining Rigs Is Sitting Unused in Containers

CORRECTION (Feb. 1, 15:19 UTC): Corrects Luxor’s function on the platform. An earlier model of this story stated it might proceed to be a dealer.

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The Obsessed Guy
Hi, I'm The Obsessed Guy and I am passionate about artificial intelligence. I have spent years studying and working in the field, and I am fascinated by the potential of machine learning, deep learning, and natural language processing. I love exploring how these technologies are being used to solve real-world problems and am always eager to learn more. In my spare time, you can find me tinkering with neural networks and reading about the latest AI research.


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