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Topic: USA's largest mining farm? 1 petahash making 8 million a month (see the vid) (Read 7465 times)

legendary
Activity: 1512
Merit: 1057
SpacePirate.io
After paying operating expenses, I would imagine some of the profits go back into upgrading less efficient equipment to newer equipment. The secret sauce is getting your equipment to profitability as fast as possible. But if your equipment never profits, you have a take a loss at some point. The forums are filled with buyers who purchased pre-order equipment and then when it was delivered (some of it very late) the equipment wasn't as effective at turning a profit quickly.  With difficulty going up and BTC/USD going down, this month could be rough.  The larger the mining operation, the more equipment you need to turn over... IMHO You can't (or dare I say shouldn't) really treat mining equipment as a traditional asset as part of a capital expenditure. Miners are almost like a consumable, it's only good for about 8-9 months after release, then it costs more to power than it likely generates revenue.
full member
Activity: 134
Merit: 100
So why is he not taking profits and consolidating into faster more efficient miners?

I just got into the mining scene. I'm currently pulling in .2 btc/day, and I'm allocating 50% of that to new equipment.  As faster/more efficient equipment comes out, I'm swapping my stuff out at the same time increasing speed.

My garage can currently run 17,600 watts of equipment, and I'm only using 9100 of it.
sr. member
Activity: 266
Merit: 250
You know, this guys almost certainly has to sell an ever increasing amount of the Bitcoins
he mines each month. He obviously has a huge power bill, and I'll just bet the electric
company wants dollars, NOT Bitcoins. Besides mining fewer Bitcoins each month due to
the increasing difficulty, his mining operation depreciates at a furious rate compared
to almost any other "industrial" operations since his mining hardware becomes less and
less valuable each month. While the scale is impressive, the economics aren't really any
different for him compared to a guys with a single Antminer. He just has more to lose.

Exactly. Unlike traditional business where perhaps scale can offset expenses, there's no such thing in the business of bitcoin mining because it's mathematically bound to be proportionate (the more hashpower you throw at it, the more difficulty increase, negating the extra hashpower after a while). Whether you are mining with 1 S1 or 10000 S1 your ROI rate remains pretty much the same. The only winning strategy for a miner is to be the first one fastest out there, and only for about 10 days. 
member
Activity: 73
Merit: 10
wow what a mining farm lol Smiley   
hero member
Activity: 882
Merit: 1003
I believe they are happy with the their ROI.

Surely had made calculations for 20% increase every time before they made the project.
Everything less than 20% makes them even happier.

They will definetely have huge profits.

Without a doubt. They started early and chose the best chips possible at that time.

I see independent farms struggling in the future though.  As difficulty rises it will be too expensive to run them.
hero member
Activity: 728
Merit: 500
I believe they are happy with the their ROI.

Surely had made calculations for 20% increase every time before they made the project.
Everything less than 20% makes them even happier.

They will definetely have huge profits.
hero member
Activity: 882
Merit: 1003
Old news.  Few months ago.  With difficulty and current btc price.

Now he only makes about 1 million a month.

Still, its a lot...

If you calculated the amount of money to buy those bitfury chips and boards needed to push 1PH it is not a good return on investment capital.
full member
Activity: 224
Merit: 100
Old news.  Few months ago.  With difficulty and current btc price.

Now he only makes about 1 million a month.

Still, its a lot...
hero member
Activity: 882
Merit: 1003
Old news.  Few months ago.  With difficulty and current btc price.

Now he only makes about 1 million a month.
legendary
Activity: 938
Merit: 1000
Really impressive, 8 millions a month! That sounds something pretty hard to understand. Now they are not making that much anymore as BTC price dropped alot. But now I thought, companies that has Its own ways to make their own electricity like with wind electricity or water electricity , It's so good to mine for them as It's free electricity  Tongue 
alh
legendary
Activity: 1846
Merit: 1052
You know, this guys almost certainly has to sell an ever increasing amount of the Bitcoins
he mines each month. He obviously has a huge power bill, and I'll just bet the electric
company wants dollars, NOT Bitcoins. Besides mining fewer Bitcoins each month due to
the increasing difficulty, his mining operation depreciates at a furious rate compared
to almost any other "industrial" operations since his mining hardware becomes less and
less valuable each month. While the scale is impressive, the economics aren't really any
different for him compared to a guys with a single Antminer. He just has more to lose.
sr. member
Activity: 560
Merit: 250
Bounty manager (https://t.me/Gudwinn)
wouldn't it be funny if this was the cex.io farm

Posted From bitcointalk.org Android App
hero member
Activity: 490
Merit: 501
Actually, saying that any amount per month is made can't be correct. Unless you constantly add new hardware, every month you will make less than you did the month before because of other people bring new hardware on line.
full member
Activity: 203
Merit: 100
The 8 million a month mentioned in this video for 1 petahash seems a bit of an exaggeration.  Perhaps it was from last November.

At present 1 petahash would make less than 3 million dollars per month.

One petahash is about 3% of the total mining network's 32 petahash as at mid March. 

The total mining network at present makes about $100 million dollars per month of Bitcoin.  Any change from about $100 million per month is dependent on the value of Bitcoins changing.

Cheers.
hero member
Activity: 490
Merit: 501
Come on guys, that MegaBigPower's farm. those are Bitfury boards. each card is is 25+ Gh/s.
legendary
Activity: 1512
Merit: 1057
SpacePirate.io
Lulllz look at the guys hash rate from that interview:

Hahahah good catch.. he's probably wondering why he hasn't mined some BTC lately.
full member
Activity: 166
Merit: 100
Lulllz look at the guys hash rate from that interview:

legendary
Activity: 1512
Merit: 1057
SpacePirate.io
Here are more details on the farm, looks like it was debt financed but paid off.

http://www.coindesk.com/inside-north-americas-8m-bitcoin-mining-operation/

Also, word that cloudhashing.com is expanding operations to make $20 million a month:
http://www.ibtimes.co.uk/cloudhashing-com-prepares-20-million-month-bitcoin-mining-operation-1440039

The article has some newbie assumptions in it from the writer though.
legendary
Activity: 1036
Merit: 1000
guess that they are 10ghs blades each
newbie
Activity: 54
Merit: 0
Wow that is pretty amazing. 8 million per month? :S
hero member
Activity: 770
Merit: 509
Wish I had this farm lol  Shocked

https://www.youtube.com/watch?v=5CjldZLXiAU

Over a megawatt of power?!?!?

Now only 4 million.

Next month 1 million
legendary
Activity: 1232
Merit: 1000
what kind of boards is that guy using?
legendary
Activity: 1512
Merit: 1057
SpacePirate.io
Wish I had this farm lol  Shocked

https://www.youtube.com/watch?v=5CjldZLXiAU

Over a megawatt of power?!?!?
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