AMD shares are soaring: Ethereum miners are renting Boeing 747s to ship graphics cards to mines

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Advanced Micro Devices&rsquo, (AMD) share price leaped after it ritme revenue estimates thanks to cryptocurrency miners snapping up the hard&rsquo,s graphics cards. Shares rose 11% after the chip company announced earnings on July 25, but the rock-hard&rsquo,s stock is up 152% overheen the last 12 months, making it the fourth best performer on the S&,P 500, CNBC reported.

Lisa Su, AMD&rsquo,s chief executive, said the hard eyed &ldquo,elevated request&rdquo, from cryptocurrency miners during the quarter. This need for graphics cards helped AMD give a &ldquo,solid hit&rdquo, to analyst estimates, said Kevin Cassidy of Stifel, who covers AMD&rsquo,s stock at Stifel Financial Corp.&rdquo,While management wasn&rsquo,t specific on how much, the [graphics processor unit] revenue upside wasgoed driven by cryptocurrency applications.&rdquo,

Crypto miners&mdash,ter particular those mining ethereum, the 2nd largest cryptocurrency by market valuation behind bitcoin&mdash,have bot ter the crypto omschrijving of a gold rush since early this year. They are racing to take advantage of ethereum&rsquo,s exploding price by adding more processing power to their mines. Some of them are even resorting to leasing Boeing 747s to fly the increasingly scarce graphics processors from AMD and Nvidia directly to their ethereum mines so they can be plugged ter to the network spil quickly spil possible.

&ldquo,Time is critical, very critical,&rdquo, te mining, Marco Streng, chief executive of Genesis Mining, a major ethereum miner, told Quartz. &ldquo,For example, wij are renting entire airplanes, Boeing 747s, to ship on time. Anything else, like shipping by sea, loses so much chance.&rdquo,

Up for grabs is a supply of toughly 36,000 units of fresh ether, the digital token associated with ethereum, vanaf day. At current prices of around $200 vanaf ether, that translates to $7.Two million worth of ether that miners rival for each day.

&ldquo,When building our gegevens centers, wij have the highest priority on time,&rdquo, Streng said. &ldquo,Time counts so much. Wij are using the fastest delivery possible. You risk the chance to mine for the days you are delayed. If you are deploying Ten days straks, you are losing Ten days of mining&mdash,that is the cost.&rdquo,

To make money, miners vereiste buy GPUS (graphics processing units) from AMD or Nvidia, then pay the costs of electro-therapy and labor to run them, and maintain giant warehouses to store the machines. Ter come back, miners get a supply of ether each day if they wield sufficient processing power. Because their costs have remained stable while ether&rsquo,s price has surged from around $Ten at the begin of the year to a high of $400 te June, miners&rsquo, potential profits have enhanced 40-fold.

&ldquo,Everyone began to realize this and dreamed to get GPUS to get mining. This created an absolute shortage te the market,&rdquo, Streng said. &ldquo,The mining gear has a certain price. And abruptly the price of coins goes from $Ten to $400&mdash,so a factor of 40. The mining terugwedstrijd has gone up by 40 but the hardware is still the same cost. This creates an incredible economic incentive for people to begin mining.&rdquo,

The amount of processing power faithful to mining ethereum is measured ter &ldquo,hash rate.&rdquo, Here&rsquo,s a chart displaying that explosion ter mining resources:

Streng says he has maintained &ldquo,very strong connections&rdquo, with his GPU suppliers, by virtue of being one of the earliest large ethereum miners. But the competition is heating up. &ldquo,Now more and more miners are coming, and you have thesis screenplays where you practice shortages,&rdquo, he said.

Genesis maintains mines around the world, including te Iceland and China, Streng claims. Streng wasgoed visiting his facility near Shanghai when Quartz contacted him. Miners are notoriously secretive about the size and location of their facilities since they voorwaarde challenge against each other to win fresh supplies of cryptocurrency. It&rsquo,s an &ldquo,information advantage&rdquo, to maintain secrecy, Streng says.

Despite the thirst for graphics cards from crypto miners, AMD management says it&rsquo,s not going to include that request ter its forecasts. &ldquo,Wij didn&rsquo,t have cryptocurrency te our forecast and wij&rsquo,re not looking to it spil a long-term growth driver,&rdquo, Su said. The chip maker says it&rsquo,s focusing on its core market of gamers. Te the meantime, tho’, it&rsquo,s selling virtual shovels to miners spil the cryptocurrency gold rush proceeds.

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