Chinese court returns over 485,000 Radeon GPUs to cloud mining company

Jimmy2x

Posts: 23   +3
Staff
In brief: Many crypto mining outfits are being forced to re-evaluate their assets and operations as China continues to extend restrictions on cryptocurrency mining. A Chinese court recently sided with a large cloud mining provider called Genesis Mining, to ensure the return of 485,681 Radeon RX 470 8GB GPUs. Despite the victory, Genesis Mining now has the difficult task of finding homes for a very large batch of aging hardware.

Following their ongoing lawsuit against Chinese hosting provider Chuangshiji Technology Limited, China's Supreme Court 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 crypto mining leaves the company with the challenging task of finding homes for an extremely large lot of used, aging hardware.

The legal dispute, which originated in 2018 and has stretched across several years, was based on charging disagreements and payment-related issues between Chuangshiji and Genesis. The ruling orders the former to return over 485,000 Micro Star International (MSI) RX 470 GPUs to Genesis.

Genesis filed suit against the hosting provider in 2019 requesting the return of more than 560,000 GPUs and over 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 liquidating it without Genesis' consent, prompting Genesis to file suit.

Cloud-based crypto mining companies provide customers with the ability to lease mining hash power while alleviating users from the hardware and infrastructure operations that come with crypto 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 rate, associated maintenance fees, etc.

The Radeon RX 470s still carry a good deal of value in today's consumer GPU and crypto mining market. With the total returned GPUs providing a combined hash power of over 14.5 Terahash per second (TH/s) and relatively low power draw they are more than capable of producing mining-related returns.

Gamers and PC users looking for older GPU hardware can also score big with AMD's Polaris-based 8GB GPUs should Genesis decide to sell them off to non-mining buyers and distributors. Despite their primary use as mining cards, used GPUs in good condition can often be outfitted with new thermal paste and thermal pads to deliver a cost effective 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.

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elementalSG

Posts: 192   +254
If only there were a motherboard you could put AMD Crossfire to use on half a million GPUs… Maybe this cryptocompany could finally run Crysis then?
 

paul1122

Posts: 166   +151
If only there were a motherboard you could put AMD Crossfire to use on half a million GPUs… Maybe this cryptocompany could finally run Crysis then?

Techspot already tried it using custom hardware and those 1/2 million AMD gpu's. They found a single Nvidia 1060 perfromed better in most games, with proper cooling. They said it was hard to justify buying a 1/2 million Radeon cards just to get a single Nvidia 1060's perfromance.
 

elementalSG

Posts: 192   +254
Techspot already tried it using custom hardware and those 1/2 million AMD gpu's. They found a single Nvidia 1060 perfromed better in most games, with proper cooling. They said it was hard to justify buying a 1/2 million Radeon cards just to get a single Nvidia 1060's perfromance.
Well that just sucks then. Half a million GPUs in Crossfire and you still can't run Crysis!
 

emmzo

Posts: 349   +332
Sooner or later tons of used cards will flood the market. Thermal paste or not, you still get a dying card, which can break at any moment. I personally hope nobody will be stupid enough to buy crypto miner`s garbage even if it gets cheap. Let`em choke on their greed and take a big loss.
 

Sausagemeat

Posts: 791   +612
Sooner or later tons of used cards will flood the market. Thermal paste or not, you still get a dying card, which can break at any moment. I personally hope nobody will be stupid enough to buy crypto miner`s garbage even if it gets cheap. Let`em choke on their greed and take a big loss.
I bought a second used R9 280X back in 2014 after the mining wave and it was in better condition than the new 280X I purchased the previous year.

It just depends on how well the miners take care of the cards, same as gamers. Mining itself puts less strain on the card than gaming too as they use far less power.
 

godrilla

Posts: 281   +141
Was the sell off to second hand market that was being spread misinformation to cause a sell panic for scalpers so that these big mining companies can buy on the dip? If so the prices might rise up again. I hope im wrong. Tech media puts too much trust in sources without independent and freelance journalism.
Like I said before if you have a chance to get the card as close to MSRP as possible do not hesitate especially with the roadmap outlook.
 

franticfrosty

Posts: 107   +118
My question is, if they somehow managed to nullify the electricity costs for all those cards... how much $ would we be looking at per month... like total without anything taken into account.
 

Mjswooosh

Posts: 52   +82
"Here's your 500k obsolete pile of GPUs back. Have fun selling those."

A legal win that hopefully sets precedent, yes. But from a practical sense I think I'd have rather sued for damages/lost revenue.
 

godrilla

Posts: 281   +141
My question is, if they somehow managed to nullify the electricity costs for all those cards... how much $ would we be looking at per month... like total without anything taken into account.
I read these mining companies are taking out the middle men and purchasing power plants outright. I predict that electricity prices will inflate as well.
 

letsgoiowa

Posts: 16   +35
I bought a second used R9 280X back in 2014 after the mining wave and it was in better condition than the new 280X I purchased the previous year.

It just depends on how well the miners take care of the cards, same as gamers. Mining itself puts less strain on the card than gaming too as they use far less power.
I had the exact same experience. That 280X survived up until last year too despite running a nearly 30% memory OC for most of that time.
 

Markoni35

Posts: 1,290   +518
I have a feeling we'll see eBay flooded with almost unused RX 470 cards. I hope they were dusting them regularly in the police storage.