Crypto Miners Bought 25% of GPUs in the First Half of 2021

Cryptocurrency mining was a serious driving pressure of add-in board (AIB) graphics card gross sales in 2020, and that development is constant in 2021. A new report from Jon Peddie Research (JPR) says that miners bought round 700,000 high-end and midrange playing cards in the first quarter of the yr, totaling a market worth of round half a billion {dollars}.

JPR calculated the quantity of playing cards offered through the use of the trending connect fee of graphics playing cards and the precise connect fee of graphics playing cards. With knowledge exhibiting a transparent spike in 2017 and 2018 — when the earlier crypto increase occurred — this mannequin can tease out a reasonably correct estimate of what number of graphics playing cards miners are buying. In Q1 2021, the trending connect fee was round 30%, whereas the precise connect fee was above 45%. Given the mannequin, JPR predicts round 25% of all GPUs offered in Q1 2021 went to miners.

It’s vital to make clear that the mannequin doesn’t consider “informal” miners. According to JPR, the mannequin doesn’t embody avid gamers or different customers who could use a graphics card for mining on the facet. The connect fee technique, as an alternative, appears at the quantity of graphics card gross sales that didn’t go inside a conventional PC and had been as an alternative used as half of a devoted mining rig.

JPR factors out Nvidia’s devoted CMP crypto-mining playing cards and the Lite Hash Rate (LHR) GPU featured on new RTX 30-series graphics playing cards as option to decrease demand and shield the firm from “one other 2018-style crash.” Last week, JPR launched a report showcasing the development in GPU gross sales in Q1 2021 and warned chip suppliers of a possible market crash. Nvidia’s efforts may assist keep away from a inventory crash much like the one the firm skilled in 2018.

The report contrasts Nvidia’s strategy with AMD, which hasn’t taken any particular steps to fight cryptocurrency mining demand. Although AMD’s inventory crashed in 2018, it didn’t crash so far as Nvidia’s. With a thriving CPU enterprise that’s separate from any crypto mining, AMD doesn’t appear involved with its inventory value ought to the market crash.

Regardless, it’s clear that cryptocurrency miners are nonetheless a serious driving pressure of GPU gross sales and demand. Nvidia not too long ago bolstered manufacturing of RTX 30-series playing cards, seemingly in response to the falling costs of widespread cash like Bitcoin and Ethereum. It stays to be seen, nonetheless, if demand from miners will drop all through the relaxation of the yr.

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