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Cryptocurrency miners are renting Boeing 747s to ship graphics cards

Now that's just 'plane' crazy.

 

With GPU availability (and AMD's earnings / outlook) affected by the demand by miners, some of which appear to have no trouble sourcing GPU's by the planeload, renting whole Boeing 747s to deliver stock to their mining setups.

 

With the recent RX Vega launch - AMD's offering bundles as a method of encouraging more GPU stock to gamers - however, I doubt this is going to change the course of GPU availability significantly, particularly with miners renting entire commercial jets, so as avoid losing out on the opportunity cost when considering delivery times.

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It's come out that some of the most active Ethereum miners are renting Boeing 747 airplanes to ship orders of graphics cards. Yes, seriously.

 

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Cryptocurrency is highly volatile, Ethereum included. For miners with massive setups, shipping by sea is just too slow.

"Time is critical, very critical," Marco Streng, chief executive of Genesis Mining, told Quartz. "For example, we are renting entire airplanes, Boeing 747s, to ship on time. Anything else, like shipping by sea, loses so much opportunity."

 

 

The size / potential for large miners is such that the cost of renting a Boeing 747 to ship graphic cards is financially beneficial, due to the missed opportunity via other, slow delivery methods.

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Some 36,000 units of Ethereum is collectively mined each day. At around $200 per unit, miners are competing for $7.2 million worth of Ethereum per day. At one point just a few weeks ago, those figures were doubled with Ethereum spiking to $400.

"Time counts so much. We are using the fastest delivery possible," Streng added. "You risk the opportunity to mine for the days you are delayed. If you are deploying 10 days later, you are losing 10 days of mining—that is the cost."

 

 

AMD's Dr. Lisa Su touched on the effect of mining on graphics card demand during a recent earnings call.

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Even AMD has acknowledged the impact of mining on graphics cards shipments. This is something AMD CEO Dr. Lisa Su touched on during a recent earnings call.

"Relative to cryptocurrency, we have seen some elevated demand," Dr. Su said. "But it's important to say we didn't have cryptocurrency in our forecast, and we're not looking at it as a long-term growth driver. But we'll certainly continue to watch the developments around the blockchain technologies as they go forwards."

 
 

 

This makes me wonder - are there any references as to the percentage of sales estimated to be attributed to mining activities, commercial or otherwise? 

 

Link to articles:
https://qz.com/1039809/amd-shares-are-soaring-ethereum-miners-are-renting-boeing-747s-to-ship-graphics-cards-to-mines/ (Original)
http://www.pcgamer.com/cryptocurrency-miners-are-renting-boeing-747s-to-ship-graphics-cards/

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So much for Ethereum crashing.... 

Please quote our replys so we get a notification and can reply easily. Never cheap out on a PSU, or I will come to watch the fireworks. 

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AMD is going to start launching mining-specific cards? Finally, they should have done that a long time ago for earnings' sake. 

 

@muskie You need to add more opinion to your post as you're merely parroting what you're quoting. 

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Unless mining cards are significantly cheaper than their gaming counterparts they aren't going to be a very good buy. Mining with 'gaming cards' allows them to retain some resale value after they have been used for mining and these mining cards I doubt will have any resale value.

I feel that Nvidia and AMD would have been better off just 'making more cards' than switching manufacturing machinery to make mining cards. Even if it's only like an additional 20% or something per batch.

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Jesus christ. It's good though. Stimulates the economy 

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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1 minute ago, BuckGup said:

Jesus christ. It's good though. Stimulates the economy 

I hope you say that when the 1150 Ti is $350 at launch.

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6 minutes ago, ARikozuM said:

I hope you say that when the 1150 Ti is $350 at launch.

Still keeps the money turning.

ƆԀ S₱▓Ɇ▓cs: i7 6ʇɥפᴉƎ00K (4.4ghz), Asus DeLuxe X99A II, GT҉X҉1҉0҉8҉0 Zotac Amp ExTrꍟꎭe),Si6F4Gb D???????r PlatinUm, EVGA G2 Sǝʌǝᘉ5ᙣᙍᖇᓎᙎᗅᖶt, Phanteks Enthoo Primo, 3TB WD Black, 500gb 850 Evo, H100iGeeTeeX, Windows 10, K70 R̸̢̡̭͍͕̱̭̟̩̀̀̃́̃͒̈́̈́͑̑́̆͘͜ͅG̶̦̬͊́B̸͈̝̖͗̈́, G502, HyperX Cloud 2s, Asus MX34. פN∩SW∀S 960 EVO

Just keeping this here as a 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How long until they start building their own power plants???

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Thats insane, just damn insane. 

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I find it really weird that the article focuses on the specific model of aircraft being chartered for air freight.   There are a lot aircraft purpose built or converted for air freight service.  Though it is the largest commercially produced air freighter there is.

Nintendo similarly resorted to large air freight shipments to keep the Switch in supply in North America and Europe.

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14 minutes ago, Misanthrope said:

Anybody can get the specifics and shoot it the fuck out of the air?

Ah yes, terrorism, always a reliable way to bring down the price of consumer goods.

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3 minutes ago, AshleyAshes said:

Ah yes, terrorism, always a reliable way to bring down the price of consumer goods.

I wanted to make a "for the greater good" joke, but methinks it's more in line with subterfuge. 

 

Image result for for the greater good

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16 hours ago, ARikozuM said:

I wanted to make a "for the greater good" joke, but methinks it's more in line with subterfuge. 

While it's obvious that no one is actually going to do this, let's go through this slowly as if someone was serious:

1) An entire air freighter of GPUs is destroyed, the GPUs included.
2) The GPUs do not become available to the consumer market, as they have been destroyed.
3) Miners still want their GPUs and the value of the cargo was likely insured.

4) Miners buy a whole new load of GPUs.

5) Even less GPUs now available on the market for consumers.
6) Prices go up even more

There's no 'greater good', it's you wishing that the GPU shortage was WORSE and that prices went HIGHER.  Destroying the cargo plane INCREASES demand it doesn't DECREASE it.

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What I want to know is who the fuck is dumping so much money into Etherium where miners can rent cargo planes and write it off as a business expense

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1 hour ago, BachChain said:

What I want to know is who the fuck is dumping so much money into Etherium where miners can rent cargo planes and write it off as a business expense

Somebody who doesn't understand how taxes work. xD

 

But seriously, the ROI for a $300 GPU is upwards of 10 months as of 2 weeks ago. Adding this kind of overhead will make the ROI 2+ years easily. I guess some people are in it for the long haul...

-KuJoe

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5 hours ago, KuJoe said:

But seriously, the ROI for a $300 GPU is upwards of 10 months as of 2 weeks ago. Adding this kind of overhead will make the ROI 2+ years easily. I guess some people are in it for the long haul...

 

My guess is there are commercial purchase agreements when buying at this quantity. These bigger outfits would certainly be in for the long-play, rather than "testing the waters".

 

The opportunity cost here for them is huge - those that stockpiled and had the hash capacity during the bump would have been rewarded for it - it'll also go on to encourage further investment in additional capacity.

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And I was thinking it was the work of LMG for their next 1024K gaming display...

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Looks like only the rich who has lots of $$$ laying around gets to mine, because the average person won't be able to afford 7 high-end cards at 1 time, let alone rent a entire 747.  Basically the rich gets richer... And renting a 747 cost around $27,000/hour.

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insert new documentary for bitcoin eth mining in China

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138 is a good number.

 

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16 hours ago, BuckGup said:

Jesus christ. It's good though. Stimulates the economy 

It stimulates nothing, the opposite even. Google "Broken window fallacy".

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Article quality is incredibly low and screams bullshit + exaggeration.   FedEx flies a plane filled with goods for 100 people, some of which is GPU's-> "MINERS OMGZ FLYING 747S!!!!!1!!1!!!"

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I'm happy for AMD that they can sell a ton of cards... But I hate this so much because it makes graphic cards for those of us who actually need one for gaming, unable to find one or afford one due to price hikes.

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