A bitcoin mining company is aiming to rehome half a million RX 470s.
As China continues to tighten restrictions on cryptocurrency mining, many crypto mining companies are being compelled to reassess their assets and operations. A Chinese court recently ruled in favour of Genesis Mining, a large cloud mining operator, to assure the repatriation of 485,681 Radeon RX 470 8GB GPUs. Despite the triumph, Genesis Mining now faces the arduous task of finding new homes for a huge number of old machines.
Following their ongoing litigation against Chinese hosting provider Chuangshiji Technology Limited, China’s Supreme Court ruled in favour of Genesis Mining and ordered the restoration of over 485,000 graphics processing units (GPUs) to the Iceland-based cloud mining firm. While the move may appear to be a triumph for Genesis, China’s recent restriction on crypto mining has left the company with the difficult challenge of finding homes for a massive amount of used, aged technology.
The legal conflict, which began in 2018 and has lasted several years, was based on pricing disagreements and payment concerns between Chuangshiji and Genesis. The judgement requires the former to return to Genesis over 485,000 Micro Star International (MSI) RX 470 GPUs.
After terminating the hosting arrangement with Chuangshiji, Genesis filed a lawsuit against the hosting provider in 2019, asking the return of more than 560,000 GPUs and over 60,000 application-specific integrated circuit (ASIC) miners. When the contract was terminated, Chuangshiji refused to return the hardware and instead began liquidating it without Genesis’ permission, causing Genesis to initiate a lawsuit.
Cloud-based crypto mining companies allow consumers to lease mining hash power while relieving them of the hardware and infrastructure operations associated with crypto mining. In exchange for a flat payment and accompanying maintenance fees, these companies often offer fixed packages that comprise a certain amount of hash power (the processing power necessary to generate solutions to specific proof-of-work consensus processes).
In today’s consumer GPU and crypto mining markets, the Radeon RX 470s still have a lot of value. With a total hash power of over 14.5 Terahash per second (TH/s) and a relatively modest power demand, the returned GPUs are more than capable of earning mining-related returns.
If Genesis decides to offer them to non-mining buyers and distributors, gamers and PC users looking for older GPU hardware can score big with AMD’s Polaris-based 8GB GPUs. Despite their primary use as mining cards, old GPUs in decent condition may frequently be retrofitted with new thermal paste and cooling pads to provide a low-cost 1080p gaming experience.
Statements on used GPUs from manufacturers such as Palit warn of potential 10% reductions in card performance; however, these claims have often been disproven and testing has shown there is little to no difference between new and used GPUs in scenarios where the cooling components are intact and functional.