In Word: Many cryptocurrency mining teams are being forced to reassess their assets and operations as China continues to expand restrictions on cryptocurrency mining. Recently, a Chinese court sided with a large cloud mining provider called Genesis Mining, to guarantee the return of 485,681 8GB Radeon RX 470 GPUs. Despite the victory, Genesis Mining now has the difficult task of finding homes for a very large batch of old hardware.
Following its ongoing lawsuit against Chinese hosting provider Chuangshiji Technology Limited, the Supreme Court of China has sided with Genesis Mining and ordered the return of more than 485,000 graphics processing units (GPUs) to the Iceland-based cloud mining company. While the decision may seem like a victory for Genesis, China’s recent crackdown on cryptocurrency mining leaves the company with the challenging task of finding homes for a host of used and aging hardware.
The legal dispute, which originated in 2018 and has spanned several years, was based on charge disagreements and payment-related issues between Chuangshiji and Genesis. The ruling orders the former to return more than 485,000 Micro Star International (MSI) RX 470 GPUs to Genesis.
Genesis filed a lawsuit against the hosting provider in 2019 requesting the return of more than 560,000 GPUs and more than 60,000 application-specific integrated circuit (ASIC) miners after terminating the hosting agreement with Chuangshiji. Upon termination, Chuangshiji refused to return the hardware and instead began to liquidate it without Genesis’s consent, prompting Genesis to file a lawsuit.
Cloud-based cryptocurrency mining companies provide customers with the ability to lease mining hashing power while relieving users of the hardware and infrastructure operations that come with cryptocurrency mining. These companies typically offer fixed packages that include a fixed amount of hash power (the computing power used to provide solutions to specific proof-of-work consensus mechanisms) in exchange for a flat fee, associated maintenance fees, etc.
The Radeon RX 470s still have great value in today’s consumer GPU and crypto mining market. With fully powered GPUs providing a combined hash power of over 14.5 Terahash per second (TH / s) and relatively low power consumption, they are more than capable of producing mining related returns.
Gamers and PC users looking for older GPU hardware can also get great results with AMD’s Polaris-based 8GB GPUs should Genesis decide to sell them to non-mining buyers and distributors. Despite their primary use as mining cards, GPUs used in good condition can often be fitted with new thermal paste and thermal pads to deliver a cost-effective 1080p gaming experience.
Statements about used GPUs from manufacturers such as Palit warn of possible 10% reductions in card performance; However, these claims have often been refuted and tests have shown that there are little or no difference between new and used GPUs in scenarios where cooling components are intact and functional.