The cryptocurrency market may have trembled, but in Shenzhen’s famed Huaqiangbei electronics district, business is booming as usual.
Just 19 hours after the crypto world was rocked by a dramatic crash, life inside Huaqiangbei’s mining equipment hub was moving at full speed. On the afternoon of May 20, workers wheeled cartloads of graphics cards and mining rigs into elevators, while delivery riders sprinted to keep up with demand. Outside the lifts, eager buyers waited—these weren’t ordinary computer parts, but the essential tools fueling the digital gold rush.
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The Night That Shook Crypto
The night before—May 19 at 7 PM—saw a brutal selloff across digital assets. According to Coindesk, Bitcoin plummeted from $34,000 to $31,000 in just 16 minutes. By day’s end, it had lost nearly 30% of its value, bottoming out near $29,000. Ethereum crashed below $2,000, down over 40%, while Dogecoin dropped more than 40% to under $0.30 per coin.
In less than 24 hours, 480,000 traders were liquidated, with losses totaling $5.9 billion (about RMB 38 billion). As panic spread online, some retail investors saw opportunity: “Crypto crash means GPU prices might finally drop!” one hopeful netizen posted.
But in Huaqiangbei, that hope was quickly extinguished.
“Don’t even think about it,” snapped a local GPU dealer when asked about price drops. “We can’t even get stock anymore. I won’t quote prices unless I know they’ll hold—everything could go up tomorrow.”
Huaqiangbei: The Global Epicenter of Mining Hardware
Over the past two years, Huaqiangbei has re-emerged as a powerhouse in the crypto mining ecosystem. Once known for selling PCs and components, many shops have pivoted to full-time mining equipment sales. With high-performance GPUs in hand, merchants doubled down on what they know best—hardware—and turned their stores into mining hubs.
Today, Huaqiangbei is one of the world’s largest distribution centers for mining rigs and graphics cards, supplying miners across continents. Despite global volatility, demand remains strong—and so do prices.
When reporters visited the area following the crash, they found GPU prices unchanged or slightly higher. For veteran merchants who’ve weathered previous market cycles, the dip was just noise.
“It’ll bounce back,” said one shop owner who doubles as a miner himself. “We’ve seen this movie before.”
“GPU Price Drop? Not Happening.”
Inside SEG Plaza, Huaqiangbei’s tech mecca, floors dedicated to mining operations buzzed with activity. Stores labeled with “mining” signs tested rigs nonstop. Display cases held few ready-to-sell units—most inventory was already spoken for.
The NVIDIA RTX 3080, often dubbed the “Hermès of GPUs,” now sells for around ¥16,000—up from ¥15,000 earlier in the month. That’s nearly triple its official MSRP of ¥5,499.
Only three vendors in the entire building had physical stock.
“Dropping prices? Impossible,” said one dealer with inventory on hand. “My cost price is already higher than what I’m selling at.”
Others without stock refused to quote at all. “You can’t just order these things anymore,” lamented another merchant. “If I quote today and fulfill tomorrow, I don’t know if I’m making money or losing it.”
A widely shared price trend chart among local traders—updated through February—shows most GPU models have at least doubled in value over the past year, even less popular ones.
“It’s actually been stable,” said Li Wei, a longtime GPU vendor. “Bitcoin dips happen all the time. But as long as people are mining, demand stays.”
He pointed to older models like the RTX 2060: normally priced around ¥2,000, it once sold for ¥5,000–6,000 during peak mining seasons and rarely dipped below ¥4,000.
“Whether crypto is up or down,” he added, “if there are miners out there, GPUs will always be needed.”
And when Bitcoin rallies, it pulls other coins like Ethereum and Dogecoin with it—spiking demand across all GPU tiers.
👉 See how miners are optimizing returns amid market swings.
Why Miners Stay Calm During Crashes
Less than 30 hours after the crash, Bitcoin rebounded to $40,000—dragging altcoins back up with it. Though it briefly dipped below $40K again by noon on May 21 (down 3.48% intraday), confidence among miners remained unshaken.
“Volatility affects profits,” said He Ming, a part-time miner, “but it doesn’t make us quit.”
Unlike traders betting on short-term price swings, miners earn gradually through computational work. Their main costs? Hardware and electricity.
Take Ethereum mining: one GPU might generate 0.001 ETH per day. It takes 50 days to reach the minimum withdrawal threshold of 0.05 ETH. At current prices (~¥16,000/ETH), that’s about ¥800 gross revenue over 50 days—or roughly ¥4,500 net profit after a year.
“Not a get-rich-quick scheme,” He noted. “So we don’t panic when prices swing.”
Wang Qiang, a shop owner who mines on the side, put it simply:
“Traders buy coins with cash and stress over every dip. We mine with time and patience. We hold. We wait. We cash out at the top.”
Many Huaqiangbei merchants are both sellers and miners—giving them firsthand insight into market dynamics.
“You can’t panic-sell what you’re building slowly,” Wang said. “As long as we can’t secure enough stock, prices won’t fall. And that means crypto will recover.”
“No Million? Then Stay Silent.”
Known as China’s “Electronics Street,” Huaqiangbei dominates global mining hardware distribution—an estimated 90% of mining rigs pass through here before reaching international markets.
Since 2021’s crypto boom reignited demand, business has been fierce. At one point, even laptops vanished from shelves—repurposed into makeshift mining farms.
But success here isn’t just about faith in crypto—it’s about timing and strategy.
“If you picked the right model early,” said an IC component dealer, “doubling or tripling your money was easy.”
Last year’s pandemic-related supply crunch sent specialized mining ICs soaring. A ¥100 chip could hit ¥1,000 within weeks.
“Enough to cover a down payment on an apartment,” he joked.
Multiple component sellers confirmed: in 2023 and early 2025, average profits in Huaqiangbei’s IC sector started at one million RMB—and those who didn’t hit seven figures barely spoke up.
“We’re not buying homes,” one merchant said bluntly. “We’re buying storage units.”
For many shop owners, profitability hinges on inventory control.
“Buy low → Store → Sell high → Repeat,” he explained. “More money means more stock means needing another warehouse.”
These small storage spaces have become status symbols—and strategic assets—in Huaqiangbei’s relentless cycle of trade and accumulation.
Faith in the Future
Despite past crashes—including the infamous 2018 “mining winter”—Huaqiangbei hasn’t lost faith.
Even after Bitcoin’s wild swings in May 2025, merchants stayed calm. Their mindset? Crypto will rebound—and those prepared will profit again.
They’re not chasing trends; they’re building infrastructure for the next wave.
As one shop owner put it:
“If you haven’t made millions here… you don’t even enter the conversation.”
Frequently Asked Questions (FAQ)
Q: Why aren’t GPU prices falling despite Bitcoin crashing?
A: Because demand from miners remains steady. As long as mining is profitable—even marginally—hardware scarcity keeps prices high.
Q: Can individuals still profit from GPU mining today?
A: Yes, but not quickly. Returns are modest and long-term. Profitability depends on electricity costs, hardware efficiency, and sustained network participation.
Q: Is Huaqiangbei still the main source for global mining equipment?
A: Yes. An estimated 90% of custom mining rigs pass through Huaqiangbei before being shipped worldwide.
Q: How do merchants afford to stockpile such expensive inventory?
A: Many operate on thin margins but high volume. Others reinvest profits into storage and bulk purchasing to capitalize on future price increases.
Q: What happens if another ‘mining ban’ occurs?
A: While regulatory risks exist, Huaqiangbei has proven resilient—adapting to shifts by targeting overseas markets and diversifying product lines.
Q: Are older GPUs still useful for mining?
A: Absolutely. Lower-tier cards like the RTX 2060 remain viable for certain altcoins and are often used in budget mining setups.
👉 Learn how experienced miners are preparing for the next bull run.
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