Bitmain Partially Refunds Bitcoin Miner Buyers After Price Cuts

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 that 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.