Fully-assembled crypto mining kits selling fast at Sim Lim Square

SINGAPORE — Despite the authorities sounding a note of caution, the cryptocurrency fever is spreading to the shop floors at Sim Lim Square, with at least five shops selling ready-made computing machine rigs used to facilitate transactions in Bitcoin and other digital currencies.

These “mining rigs” are composed of gaming computer components such as graphics processing unit (GPU) cards, as well as a motherboard and cables. The entire set up cost a minimum of S$3,000 each, and are put together so that miners no longer have to assemble their own machines out of separate components.

On Friday (Jan 26), Bloomberg reported that stores at Sim Lim Square were selling ready-made computing machines in recent weeks. When TODAY visited the mall on the same day, the shopowners said the machines — which are assembled by the shops — are selling like hot cakes, with most stalls running out of stock. This is the second time in four months that they are facing this situation, said the shopowners, whose profit margin on each rig is about 3 to 5 per cent.

Meanwhile, a search online showed that cryptocurrency mining rigs were also sold on platforms such as Carousell, with the asking price ranging between S$3,000 and S$9,999.

Mr Srini, 34. who runs a store on level four of Sim Lim Square, said he has been selling at least one rig a day, on average. In his shop, there were four rigs — each larger than a 24-can carton — which were running, emitting significant heat.

His company, which also sells computer components and IT products such as SD cards, mouses and keypads, started selling the rigs since the end of July last year when customers started asking for them. At that time, a Bitcoin was priced at US$2,500 per unit. On Friday, Bitcoin’s valuation reached as high as US$10,430.

According to the shops, customers who bought the rigs are as young as 13 years old, and as old as 60. The owners said they have seen returning customers who have bought as many as three rigs. “Some students come in using their pocket money to buy components, asking how much can they buy with the amount that they have,” said Mr Srini. He added that tourists from countries such as China, the Philippines, Myanmar, Indonesia, Malaysia, Japan and South Korea, have also bought rigs from his shop.

The rigs are customisable and built according to a customer’s budget. Mr Srini, who usually sells rigs with the eight or 12 GPU cards, said he has gotten requests to build one with 100 GPU cards which can set a buyer back by a five-figure sum. However, he has been unable to do that because his inventory is running low. “There is an acute shortage of hardware right now. We are out of stock. There are now preorders piling up due to the shortage in GPU cards,” said Mr Srini, whose company also installs the mining software.

As a result of the shortage, the prices of GPU cards have shot up from S$400 to S$600 each, he added.

Cryptocurrencies are obtained through a peer-to-peer computer process described as mining. Miners have to solve mathematical problems to verify the transactions, or payments from one user to another on a decentralised network.

Currently, users in Singapore prefer to mine the cryptocurrency Ethereum - the second largest in the market, behind Bitcoin - as it is easier to mine.

While regular desktop computers can be used to mine cryptocurrencies, serious miners will turn to the rigs which have greater computing power.

Based on what customers told them, the shopowners told TODAY that leaving a rig running for a full month can net about S$450.

Mr Joiny Jin, 32, a shopowner on the fifth floor of Sim Lim Square, said he gets enquiries about the rigs from five to six people each day. His store has been selling gaming components and electronics for the past decade, before dabbling in the sale of rigs.

Mr Jin felt that the current frenzy could subside in six months. Should that happen, it will not affect the shops much as they will then sell the components separately for gaming, for example.

For now, Mr Jin said his monthly revenue has gone up by almost a fifth, thanks to the demand for the rigs.

Mr Srini added: “We are not sure of what the future would bring, but right now, things are good for us.”

Last month, the Monetary Authority of Singapore (MAS) warned the public against investing in cryptocurrencies such as Bitcoin, as it expressed concerns that people may be tempted to plough in their money due to the recent escalation in prices.

In a press release, the central bank advised individuals to “act with extreme caution and understand the significant risks they take on if they choose to invest in cryptocurrencies”.