Enegix's bitcoin mining farm in Kazakhstan with 50k mining rigs

Jating

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Quote from: stompix on August 25, 2020, 05:42:59 AM

Quote from: Jating on August 24, 2020, 05:38:55 PM

And it was reported that it will represent at least 6 EH/s mining power and it cost the company more than $20 million. I'm sure this is going to be long term engagement so this is a win-win situation again for bitcoin.

Hmm, the numbers are a bit weird.
To achieve 6Exahash you would need indeed 50k S19Pro, but ...50k S19s will be even with a huge discount around 100 million at least.

We really don't know the numbers of S19, but according to the article:

https://www.coindesk.com/bitcoin-mining-facility-rigs-kazakhstan

Quote from: GeorgeJohn on August 24, 2020, 08:37:07 PM

Quote from: Jating on August 24, 2020, 05:38:55 PM

I want to if these is going to enable people to be employed, if the mining company happened to be set up,so that some people can be able to drop application

Again, as per the article:

Quote

Enegix already operates two mining facilities but the Ekibastuz site is its largest – it will employ upwards of 160 people, including engineers, electricians and security personnel.

Probably you need to contract them thru their website if you are interested to work with them.

thesmallgod

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This is a great investment. The project capital is even more than what some used in building some solar panel plants in my country. Hopefully this is successful. I would love to know if anyone can give rough estimate of the number of years it will take for the project to reach break even point using a particular selling price of 1 btc

zasad@

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Kazakhstan is one of the countries of the former USSR that has a large energy capacity. The price for 1 kilowatt on the wholesale market is 1-1.5 rubles (0.013-0.02 dollars) per kilowatt.
At such prices, mining is profitable on Bitmain S15 ASICs.

180 MW is a huge capacity, which means that production is decreasing. Economic growth statistics show growth, but in practice this is a hoax with numbers.

88% of all energy comes from burning minerals (oil, gas, coal, peat), there is no nuclear energy in Kazakhstan. Thanks to its huge reserves of minerals, this country can become a major mining center.

stompix

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Quote from: Jating on August 24, 2020, 05:38:55 PM

And it was reported that it will represent at least 6 EH/s mining power and it cost the company more than $20 million. I'm sure this is going to be long term engagement so this is a win-win situation again for bitcoin.

Hmm, the numbers are a bit weird.
To achieve 6Exahash you would need indeed 50k S19Pro, but ...50k S19s will be even with a huge discount around 100 million at least.

Quote from: sheenshane on August 24, 2020, 05:54:24 PM

This is good news for the Bitcoin community. This means that the more Bitcoin mining facilities the faster Bitcoin transactions have.
The 50K mining rigs are a big help to slow down the mempool congestion and I think this may solve for the heavy traffic soon.
It's great news, IMO.

You can add tomorrow a quadrillion miners, what you will solve is just mine blocks after till the next difficulty adjustment, then it will be the same pace and the same capacity.
A million miners or a CPU miner, after the difficulty adjustment both would confirm the same number of transactions.

dothebeats

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Kazakhstan is just one of the many countries out there that do not receive much attention when it comes to building mega infrastructures such as this. Being one of the largest countries in the world with a relatively cheap power rates for industrial purposes, it's really possible that some groups will be interested to build their own mining farms in there. Perhaps they even got a special deal from the government to set things up.

Nowadays there are a lot of firms that are eyeing bitcoin mining on their ventures. We'll see some sort of spike in the global hash rate once these farms are up and running. It's good that the ecosystem is slowly getting decentralized once more, as it should have from the start.

cryptomaniac_xxx

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Quote from: AjithBtc on August 24, 2020, 07:32:05 PM

50000 mining rigs with an investment of $20m isn't an easy to do thing. This could've been a long before plan, but the market might be looking fair by now. Is it legal to mine in Kazakhstan, if not that's an added risk as we don't know when government is gonna seize it.

They are imposing a 12%-15% tax on everything related to crypto (still quite cheap as compare to other countries) and that why he opt to mine it in Kazakhstan. So I doubt that the government will simply over turn everything and confiscate. And I'm sure that Enegix may have gotten some sweet deal with the Kazakhs government.

@GeorgeJohn - its highly technical, so probably engineers are going to be hired to maintain the farm 24x7.

GeorgeJohn

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Quote from: Jating on August 24, 2020, 05:38:55 PM

https://twitter.com/EnegixLLC/status/1297797248445820929

Enegix LLC is building a 180 MegaWatt mining farm in Kazakhstan next month. 50,000 mining rigs, damn this will be huge for the mining industries. And it was reported that it will represent at least 6 EH/s mining power and it cost the company more than $20 million. I'm sure this is going to be long term engagement so this is a win-win situation again for bitcoin.

I want to if these is going to enable people to be employed, if the mining company happened to be set up,so that some people can be able to drop application

TravelMug

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Quote from: AjithBtc on August 24, 2020, 07:32:05 PM

Bitcoin mining is getting harder and harder with time. This is all because of the active involvement of large scale investors getting into mining as a business rather than adding more security to the network.

50000 mining rigs with an investment of $20m isn't an easy to do thing. This could've been a long before plan, but the market might be looking fair by now. Is it legal to mine in Kazakhstan, if not that's an added risk as we don't know when government is gonna seize it.

And perhaps these companies involving themselves are banking that the price of bitcoin will really take off in the next 2-5 years that's why they are willing to take the risk now.

And this is cyclical I guess, we have some speculation that as this halving in 2020 will make some old mining operators succumb because it's no longer profitable to them, there are reports that as high as 30% are shutting down their business. Now look at the current scenario, we have seen big mining companies pushing the boundaries to invest huge amount of money.

AjithBtc

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Bitcoin mining is getting harder and harder with time. This is all because of the active involvement of large scale investors getting into mining as a business rather than adding more security to the network.

50000 mining rigs with an investment of $20m isn't an easy to do thing. This could've been a long before plan, but the market might be looking fair by now. Is it legal to mine in Kazakhstan, if not that's an added risk as we don't know when government is gonna seize it.

Kemarit

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Quote from: milewilda on August 24, 2020, 06:52:20 PM

Quote from: coupable on August 24, 2020, 05:46:45 PM

20$ million in a mining farm investment ?? This is a huge investment. I think we need more proofs of this to be really happening.
If we calculate how long time needed to cover this large investment, and with actual situation for the bitcoin mining investment, we should talk about years.
Kaxakhestan is not a paradise for mining industry and electricity costs more than we may think.
Honestly, i can't really trust in the credibility of this news. Waiting for more opinions.

I still have those doubts if this one is real.Do they able to make up some research first before making some consideration on jumping to mining venture?
Rewards have been cut to half and also electricity cost isnt really that much low compared to other countries which make ROI even more longer.unless if they've been just doing this for another
purpose rather than aiming for making profits. $20M budget for mining business isnt a joke but well its their own money to spend on and this might trigger
out other companies or individuals out there to go back into mining industry.

And that's why they chooses to go in Kazakhstan wherein electricity is cheap, and not just cheap it is abundant as well, they are rich in reserves of fossil fuel: (https://energypedia.info/wiki/Kazakhstan_Energy_Situation).

And this is not their first venture on bitcoin mining according to (https://www.coindesk.com/bitcoin-mining-facility-rigs-kazakhstan)

Quote

Enegix already operates two mining facilities but the Ekibastuz site is its largest – it will employ upwards of 160 people, including engineers, electricians and security personnel.

So they know the business already and willing to risk and be in the mix in this very competitive mining niche.

bL4nkcode

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Quote from: sheenshane on August 24, 2020, 05:54:24 PM

This means that the more Bitcoin mining facilities the faster Bitcoin transactions have.

Unfortunately, it doesn't work like that. It just means that more miners the higher difficulty it will become, higher hash rates, and the network will be more secure than before from any attacks.

CaVO32

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Quote from: milewilda on August 24, 2020, 06:52:20 PM

Quote from: coupable on August 24, 2020, 05:46:45 PM

20$ million in a mining farm investment ?? This is a huge investment. I think we need more proofs of this to be really happening.
If we calculate how long time needed to cover this large investment, and with actual situation for the bitcoin mining investment, we should talk about years.
Kaxakhestan is not a paradise for mining industry and electricity costs more than we may think.
Honestly, i can't really trust in the credibility of this news. Waiting for more opinions.

I still have those doubts if this one is real.Do they able to make up some research first before making some consideration on jumping to mining venture?
Rewards have been cut to half and also electricity cost isnt really that much low compared to other countries which make ROI even more longer.unless if they've been just doing this for another
purpose rather than aiming for making profits. $20M budget for mining business isnt a joke but well its their own money to spend on and this might trigger
out other companies or individuals out there to go back into mining industry.

I believe they do their due diligence before jumping on this expensive project. No one will jump blindly to a huge project like this. We may not be seeing their motives here but I am certain that they have their goals here that want to achieve. We will see if this is a legit project as time goes by. $20M is no doubt a big money to dedicate for bitcoin mining farm. But who knows, they already calculated their risks and returns on this? Who are we to judge their decisions, right?

milewilda

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Quote from: coupable on August 24, 2020, 05:46:45 PM

20$ million in a mining farm investment ?? This is a huge investment. I think we need more proofs of this to be really happening.
If we calculate how long time needed to cover this large investment, and with actual situation for the bitcoin mining investment, we should talk about years.
Kaxakhestan is not a paradise for mining industry and electricity costs more than we may think.
Honestly, i can't really trust in the credibility of this news. Waiting for more opinions.

I still have those doubts if this one is real.Do they able to make up some research first before making some consideration on jumping to mining venture?
Rewards have been cut to half and also electricity cost isnt really that much low compared to other countries which make ROI even more longer.unless if they've been just doing this for another
purpose rather than aiming for making profits. $20M budget for mining business isnt a joke but well its their own money to spend on and this might trigger
out other companies or individuals out there to go back into mining industry.

NotFuzzyWarm

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Quote

This means that the more Bitcoin mining facilities the faster Bitcoin transactions have.

No, it means the higher diff will go to maintain the target of an average of 10 min per-block..

As for the farm's RO, ja it will be years. So what? That just means the investment is on-par with just about every (non-crypto) sort of industry on the planet.

sheenshane

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This is good news for the Bitcoin community. This means that the more Bitcoin mining facilities the faster Bitcoin transactions have.

I don't know how to calculate the cost of electric energy cost consumption per mining rig, are they able to survive the energy cost consumption or they had another source of energy in order to survive the whole operation?

The 50K mining rigs are a big help to slow down the mempool congestion and I think this may solve for the heavy traffic soon.
It's great news, IMO.

btc_angela

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Quote from: coupable on August 24, 2020, 05:46:45 PM

20$ million in a mining farm investment ?? This is a huge investment. I think we need more proofs of this to be really happening.
If we calculate how long time needed to cover this large investment, and with actual situation for the bitcoin mining investment, we should talk about years.

It says September, so let's see how the hash rate will be that time once they become operational next month. Don't be surprised though at there was another company that invested heavily on bitcoin mining. Marathon Patent Group Announces $23 Million Contract with Bitmain to Purchase 10,500 S-19 Pro Miners.

Quote

Upon Delivery and Full Installation, the Company’s Mining Operations Will Include 13,520 Next Generation Miners and Produce 1.55 Exahash (1,555 PH/s) Representing 1.2% of the Current Worldwide Bitcoin Hashrate

coupable

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20$ million in a mining farm investment ?? This is a huge investment. I think we need more proofs of this to be really happening.
If we calculate how long time needed to cover this large investment, and with actual situation for the bitcoin mining investment, we should talk about years.
Kaxakhestan is not a paradise for mining industry and electricity costs more than we may think.
Honestly, i can't really trust in the credibility of this news. Waiting for more opinions.

Jating

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Activity: 2842

Merit: 772

https://twitter.com/EnegixLLC/status/1297797248445820929

Enegix LLC is building a 180 MegaWatt mining farm in Kazakhstan next month. 50,000 mining rigs, damn this will be huge for the mining industries. And it was reported that it will represent at least 6 EH/s mining power and it cost the company more than $20 million. I'm sure this is going to be long term engagement so this is a win-win situation again for bitcoin.

Topic: Enegix's bitcoin mining farm in Kazakhstan with 50k mining rigs (Read 211 times)