Bit Digital Inc. (BTBT) has started to move all of its mining computers out of China after the crackdown began earlier this year. While, in the past, people used their personal computers to mine Bitcoin, it is now a huge industry with large companies spending huge amounts on mining equipment.
With over 20,000 mining computers moving out of China, Bit Digital faces an enormous and worrying task. Standard PCs are prone to damage through shaking, but mining rigs are much more delicate and a lot more expensive than many consumer computers.
Although BTBT has 20,000 rigs to move, that is only around 50% of their total availability. An article looking into BTBT says that their last report shows 40,865 mining rigs available – each of them costing around $19,000.
That makes it very clear to see they are one of the largest publicly-listed mining businesses in the world, with a mining asset of around $776.4 million.
Even if Bit Digital only moves 50% of their machines out of China, that is still $388.2 million worth of very delicate computing hardware to pack and ship to Alberta, Canada, Georgia, Nebraska, and Texas.
Now is not the best time to take on such a feat, either. Oil prices have increased, and Covid-19 has taken its toll on the transport infrastructure, meaning everything is slower than it would have been and more expensive than ever to move anything, let alone tons of delicate and expensive hardware.
While the logistics are a challenge and extremely expensive, there is another huge fee that BTBT will need to pay – all computers entering the U.S. from China are all subject to an additional 25% tariff, even though Bit Digital is a business based out of New York.
However, the largest issue they have to contend with right now is the option of how to ship them. BTBT has to weigh up mining downtime and transportation costs to see if air or sea transport is more beneficial.