The fall of the cryptocurrency market and the decrease in the profitability of mining led to a massive sale of top video cards by Russian miners in the secondary market.
As told to Forbes by sources who wished to remain anonymous, the mining market in Russia in June decreased by about five times compared to the beginning of the second quarter of this year. This led to a threefold drop in prices for top-end video cards. For example, the Nvidia GeForce RTX 3090 graphics card now costs from 120,000 to 170,000 rubles, while in March its price reached almost 540,000 rubles. Moreover, a massive sale of video cards in the secondary market is recorded.
An Avito representative told Forbes that sales of video cards on the site fell by 7% in April, and by another 3.5% in May. Avito currently has 4,384 Nvidia GeForce RTX 3060 and 1,230 Nvidia GeForce RTX 3090 video cards sold on Avito in Russia.
Perhaps this is how miners curtail their activities and try to sell equipment that is falling in price against the background of a general decrease in the profitability of mining. Another reason for the sale of video cards by Russian miners may be the expected transition of Ethereum to the Proof-of-Stake (PoS) algorithm in August.
The problems of the Russian segment of the cryptocurrency market reflect the global trend towards reducing mining costs, decommissioning unprofitable equipment and increased sale of accumulated crypto assets to cover operating costs.
In “good times”, miners have enough funds to cover their ongoing electricity costs and administrative expenses. However, those days seem to be in the past. By data financial reports provided by NYDIG, miners sold 4,411 BTC in May. This is three times more than the monthly average of 1,115 BTC for previous periods.
Recall that in May, after the comments of the relevant committees of the State Duma, the version of the draft law “On Mining in the Russian Federation” previously proposed for approval was withdrawn for revision. The new bill no longer provides for an amnesty that exempts miners from customs clearance of equipment and paying taxes.