MegaBigPower Opens Buyback for Unprofitable Bitcoin Miners - page 3.

MrTeal

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Quote from: CanaryInTheMine on March 05, 2015, 11:59:24 AM

Quote from: MrTeal on March 05, 2015, 11:46:19 AM

This would also serve to push down global hashrate in the short term. If MBP picks up 15PH/s for a song from people who are operating at breakeven right now, not only do they get a unit (say an S3) that they can run profitably, but during the move they're keeping difficulty increases in check.

It is interesting that they would bother with this though. I would have thought they would be extremely busy getting ready to integrate new Bitfury product into their mines as it is released.

There's just no decent hardware available in the marketplace. Manufacturers slowed down due to depressed btc price. Bitfury announcement doesn't mean a mining product is about to be ready to ship to an end user next week. In fact I think it will be a while before any products ship with latest BF chip. They will mine the shit out of it with first batches of their own chips...

My understanding (quite possibly mistaken) is that MBP is a pretty premier partner of the Bitfury group, and I would have expected them to get pretty early access to new hardware. A lot might have changed since 2013 though, that might not be the case anymore. That's the interesting part.

This project won't be without delays too, I would assume. If they are looking at getting offers now I'd expect it could be a month or more before any significant volume is decommissioned, shipped, installed and running.

CanaryInTheMine

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between a rock and a block!

Quote from: MrTeal on March 05, 2015, 11:46:19 AM

This would also serve to push down global hashrate in the short term. If MBP picks up 15PH/s for a song from people who are operating at breakeven right now, not only do they get a unit (say an S3) that they can run profitably, but during the move they're keeping difficulty increases in check.

It is interesting that they would bother with this though. I would have thought they would be extremely busy getting ready to integrate new Bitfury product into their mines as it is released.

There's just no decent hardware available in the marketplace. Manufacturers slowed down due to depressed btc price. Bitfury announcement doesn't mean a mining product is about to be ready to ship to an end user next week. In fact I think it will be a while before any products ship with latest BF chip. They will mine the shit out of it with first batches of their own chips...

Mikestang

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Quote from: MrTeal on March 05, 2015, 11:46:19 AM

It is interesting that they would bother with this though. I would have thought they would be extremely busy getting ready to integrate new Bitfury product into their mines as it is released.

And that new hardware is pretty darn impressive! http://www.coindesk.com/bitfury-launches-new-28nm-bitcoin-mining-asic/

wpgdeez

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That would be sweet if they took S1's I would love to clean out my garage.

MrTeal

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This would also serve to push down global hashrate in the short term. If MBP picks up 15PH/s for a song from people who are operating at breakeven right now, not only do they get a unit (say an S3) that they can run profitably, but during the move they're keeping difficulty increases in check.

It is interesting that they would bother with this though. I would have thought they would be extremely busy getting ready to integrate new Bitfury product into their mines as it is released.

philipma1957

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'The right to privacy matters'

s-3's are about 40-50ph. Worldwide.

At 3 cents you make good money with them.

they can go down to .65watts a gh.

pmorici

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Quote from: btcminer021 on March 04, 2015, 07:06:44 PM

Can anyone explain how this could be profitable to them?

Cheap power costs and under clocking. They may also be looking to stock pile capacity in case the price goes back up. Buying hashing power is kind of like buying a BTC futures contract w/o buying BTC directly which would push the price up in the process.

anamichii

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Global economic crisis? i hold my bitcoin..

hmm i have an unused gridseed miner Grin

soy

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Quote from: ?? on ??

Quote from: tss on March 05, 2015, 12:46:43 AM

.23 cents per kwh? really?? as in less than a quarter of a penny per kwh? can that even be true?

it's not. It's $0.023 per kWh. Closer to 3 cents with taxes & other charges.

Could they be near an old nuclear reactor power station? I think rates are low near Three Mile Island and others. I recall on LI the Shoreham reactor saw very low rates in the immediate area but any meltdown threatened a very wide area - so the low rates were to influence locals not to compensate for threat - sorry, I get carried away....

Gleb Gamow

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Quote from: Bicknellski on March 05, 2015, 01:55:29 AM

I bet the buy for $ per pound and get the scrap. They won't be plugging in anything. Seriously when / if BTC goes 1000$ again where are you going to get miners?

Making sure there is nothing left on the market is a good way to make sure there is less competition. Given that there will be few miners out there then they could also sell off their own older generation miners to consumers as they phase in new generation Bitfury.

So you will be left with few if any cheap options. You have to get either cloud-mining or used equipment from their farms potentially.

This is what I was alluding to.

dogie

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dogiecoin.com

Quote from: Bicknellski on March 05, 2015, 01:55:29 AM

I bet the buy for $ per pound and get the scrap. They won't be plugging in anything. Seriously when / if BTC goes 1000$ again where are you going to get miners?

Making sure there is nothing left on the market is a good way to make sure there is less competition. Given that there will be few miners out there then they could also sell off their own older generation miners to consumers as they phase in new generation Bitfury.

So you will be left with few if any cheap options. You have to get either cloud-mining or used equipment from their farms potentially.

At $1000 - everywhere. It becomes extremely profitable to produce again and you'll see all sorts of companies pop up producing OEM style machines.

Blazed

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It seems like they will buy only certain miners though so...why would they scrap S3's? I am guessing they just want a bunch of gear for under market prices to cash in. I noticed they do not want all the crap gear (BFL, AM, FailFast, etc...). I think it is a pretty smart move, but also a little strange if Bitfury is so close to having that new chip ready?

Bicknellski

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Quote from: Mikestang on March 05, 2015, 03:05:40 AM

Quote from: Bicknellski on March 04, 2015, 07:05:46 PM

Quote from: CanaryInTheMine on March 04, 2015, 06:07:23 PM

http://www.coindesk.com/megabigpower-buyback-program-bitcoin-miners/

I haven't tried their service yet so I don't know what they are offering for SP and Bitmain hardware... but this may be better than selling on amazon or ebay

Interesting move... dry up the resale market and lower the hash rate?

Make cloud mining the only option?

Compete with the Chinese?

They already compete. They more than compete. They just had no need to supplement or offset production / mining costs at least until now maybe. Those companies engaged in cloud mining and miner production are likely trying very hard to make back the loss of BTC value.

Possibly they are looking more at cloud mining as Spondoolies has as well mentioned it. Who knows the real motives behind this but suffice to say they want to clean up the playground toys and put them away in box. Why? Look at what Singapore does with old cars? THERE ARE NONE. Unless you want to Pay & Pay to keep an antique. Taxes are extremely high on new cars. You can't buy a cheap used car and you must have a Certificate of Entitlement (COE) because of the Vehicle Quota System. As there are fewer and fewer ASIC suppliers the competition will increase. I submit that Bitfury is likely buying up used equipment like Spondoolies gave rebates if you had previously purchased and could prove you bought from another vendor. Why? Good publicity and good will. Many a miner will just jump at the chance to offload old crap. Cash for Clunkers. They could also spin it as A GOING GREEN move see how many electricity guzzling inefficient BFL Monarch we got offline.

Mikestang

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Quote from: Bicknellski on March 04, 2015, 07:05:46 PM

Quote from: CanaryInTheMine on March 04, 2015, 06:07:23 PM

http://www.coindesk.com/megabigpower-buyback-program-bitcoin-miners/

I haven't tried their service yet so I don't know what they are offering for SP and Bitmain hardware... but this may be better than selling on amazon or ebay

Interesting move... dry up the resale market and lower the hash rate?

Make cloud mining the only option?

Compete with the Chinese?

Unacceptable

legendary

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Quote from: Bicknellski on March 05, 2015, 01:55:29 AM

I bet the buy for $ per pound and get the scrap. They won't be plugging in anything. Seriously when / if BTC goes 1000$ again where are you going to get miners?

Making sure there is nothing left on the market is a good way to make sure there is less competition. Given that there will be few miners out there then they could also sell off their own older generation miners to consumers as they phase in new generation Bitfury.

So you will be left with few if any cheap options. You have to get either cloud-mining or used equipment from their farms potentially.

Like I said,I think you hit the nail on the head,Bick!! Wink

Bicknellski

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I bet the buy for $ per pound and get the scrap. They won't be plugging in anything. Seriously when / if BTC goes 1000$ again where are you going to get miners?

Making sure there is nothing left on the market is a good way to make sure there is less competition. Given that there will be few miners out there then they could also sell off their own older generation miners to consumers as they phase in new generation Bitfury.

So you will be left with few if any cheap options. You have to get either cloud-mining or used equipment from their farms potentially.

ScryptAsic

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GainerCoin.com 🔥 Masternode coin 🔥

Maybe 2-3 cents, but nothing lower in the USA. I would guess they have a deal where delivery is heavily discounted and they are paying for raw power + some small % (consumption based). I think some of the cheapest power in the world is still 2 cents delivered.

tonygal

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Quote from: ?? on ??

Quote from: tss on March 05, 2015, 12:46:43 AM

.23 cents per kwh? really?? as in less than a quarter of a penny per kwh? can that even be true?

it's not. It's $0.023 per kWh. Closer to 3 cents with taxes & other charges.

And that's the rate for private consumers, right? So chances are they get
a significant discount as an energy-intensive enterprise.

tss

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Quote from: aDude on March 04, 2015, 07:19:44 PM

Quote from: btcminer021 on March 04, 2015, 07:06:44 PM

Can anyone explain how this could be profitable to them?

they are located in central Washington where they pay 0.23 cents per KWH, they can run a lot of inefficient miners and still profit due to cheaper power then the rest of yall got.

pretty simple.

.23 cents per kwh? really?? as in less than a quarter of a penny per kwh? can that even be true?

freedomno1

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Learning the troll avoidance button :)

Quote from: btcminer021 on March 04, 2015, 07:06:44 PM

Can anyone explain how this could be profitable to them?

Your guess is as good as mine
Unless they really can dry up the market or find people who don't know much an sell them units

“Due to our extremely low power cost, we can still return funds to miners who may have gotten in just before the market fell.
But guess they are going with power costs

Topic: MegaBigPower Opens Buyback for Unprofitable Bitcoin Miners - page 3. (Read 5078 times)