free webpage hit counter

Nvidia cards fall in price as crypto miners capitulate

The price of Nvidia GPUs is plummeting as crypto miners surrender, with prices on the second-hand market dropping by 50%.

NVIDIA’s stock price has fallen 15% this week, from $173.04 on Monday to $145.96 by Friday.

A challenging market for Nvidia

The graphics processing units (GPUs) market is in trouble as tough macroeconomic conditions force cryptocurrency miners to capitulate. Miners who previously advocated “diamond hands” are reversing course, selling tokens at the bottom to cover operating costs or now outstanding debts.

In June, cryptocurrency mining company Bitforms sold 3,000 bitcoin worth $62 million to improve liquidity. Some miners, big and small, have gone even further by selling mining equipment.

Even though Nvidia’s recommended retail price remains unchanged, the fire sale is causing a drop in the value of GPU miners on secondary markets. Tristan Guerra, an analyst at financial services firm Robert W. Byrd explained the problem Bloomberg Earlier this week.

“People don’t want to buy GPUs knowing they’re likely to be obsolete in two quarters,” Guerra said. “We believe crypto-related purchases have steadily declined.”

Pierre Ferragu of New Street Research said about $3 billion worth of graphics cards bought by miners from early 2021 and those same cards are “now being flushed into the secondhand market”.

As the value of mining equipment declines, secondary risk emerges. In many cases, loans taken by mining companies are collateralized by mining equipment. As the value of the equipment continues to decline, the collateral value evaporates.

Speculation is rife

With the cards dropping in price, speculations are rife that Nvidia has halted production on its RTX 3080 12 GB card. According to the graphics card enthusiast @Zed__Wang Nvidia continues to produce the RTX 3080 10 GB card, but the price of the 12 GB card has made its production counter-productive. According to Wang, although the RTX 3080 12 GB costs more to produce, the retail price of the two units is almost the same.

Apparently, the gaming market cannot keep up with Nvidia’s production of more powerful graphics cards. The company is yet to make an official announcement on the matter, which has been selected Gaming outlets.

In May, Nvidia was fined $5.5 million by the SEC for failing to disclose that its chips were used for mining purposes. Ironically, just a few months later, that trend appears to be reversing.


All information on our website is published in good faith and for general information purposes only. Any action readers take on information found on our website is strictly at their own risk.

Leave a Reply

Your email address will not be published.

Previous post Situation: Price hike adds to ‘double whammy’ of hike – Newspaper
Next post Hospitals see challenges around price transparency, technology and resources