Mining is the best way to dollar cost average into Bitcoin at a discount.
However, there are few experts and industry leaders capable of building and operating large mining farms. As an individual, hedge fund, or institution with no prior experience, the best way to get exposure to mining is by buying your own Bitcoin mining machines and hosting them at a low-cost secure data center.
What machine should you buy?
The two most important details when evaluating different machines are hash rate and power usage. Hash rate is measured in terra hashes per second (TH/s), and power usage is measured in watts (W).
From these two details, you can calculate machine efficiency. Newer models have lower efficiency (J/TH), meaning they require less energy to produce the same number of hashes. This means new machines have higher operating margins.
Two other key factors to consider are the cost of the machines and the electricity cost when your machine runs. Machine prices are correlated with the price of Bitcoin and the current supply and demand dynamics of the machine market. Electricity rates are determined by where you host your machines and how long you lock in your hosting contract. Request a Quote from Blockware Solutions for both machine prices and hosting prices.
Bitmain Antminer S19XP
Daily revenue, daily cost, and daily profit are calculated using an electricity rate of $0.075 per kWh, a $39,500 Bitcoin price, and a hash price of $0.18 (February 25th, 2022).
Bitmain Antminer S19j Pro
It’s important to note that daily revenue, daily cost, and profit do change over time. Cost is locked in depending on your electricity rate, but revenue and profit can change. The amount of daily revenue your machine generates is determined by the number of terra hashes it can produce, the market price of bitcoin, and network mining difficulty.
Bitcoin Mining in Practice
While the daily profit numbers look nice, it is difficult to procure ASICs, build large mining facilities, and source cheap scalable electricity all on your own. As an institution, hedge fund, or high net worth individual, it makes sense to purchase and host ASICs with a trusted partner like Blockware Solutions.
With Bitcoin mining experience dating back to 2013, Blockware Solutions has sold over 250,000 ASICs, hosted 200+ MW of clients, and mined over 1,500 BTC from the Blockware Mining Pool.
If you are looking for a trusted partner to assist you in deploying capital to the Bitcoin mining space, Request a Quote from Blockware Solutions.
Blockware Intelligence: https://www.blockwareintelligence.com/