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Category Archive : Mining

Managed Bitcoin Mining

Managed Bitcoin Mining

bitcoin logoTraditionally, Bitcoin mining can be a major hassle. It entails buying, operating, maintaining and upgrading ASIC miners, which are highly specialized computers built to mine the cryptocurrency. This is a major operational obstacle, and it requires a large amount of wealth, both upfront and recurring, and constant effort to maintain. Thankfully, there’s a better way to enter the booming Bitcoin mining business without the massive capital expenditures and day to day headaches: Our managed mining hosting partners.

What is Managed Mining?

Managed mining is a simpler and hassle-free way to enter the Bitcoin mining field without ever having to buy expensive hardware.

Miners seek to maximize a unit called the terahash, which measures the speed of a given Bitcoin miner. The more terahashes a miner can bring to the table, the more profitable they can be. While traditional miners purchase ASIC rigs to achieve the necessary terahashes, our managed mining solutions allow clients to purchase terahashes directly from a managed mining provider. Once it’s set up, a client only needs to connect their Bitcoin wallet to receive their daily earnings.

What are the Advantages of Managed Mining?

  • 100% uptime guarantee: make money around the clock!
  • Better cost/terahash ratio compared to traditional mining (see analysis below).
  • Start mining Bitcoin almost immediately.
  • 24/7 support for our clients.
  • Investments are privately insured.
  • Market insights and ROI guidance.
  • Tax and legal guidance.

What Return on Investment Can I Expect?

Here’s an example. As you can see below, after ten months of mining this client had recouped 82% of their initial investment in November 2020. The following month, they had already gained back their principal and still had 26 months left of mining, all of which would yield pure profit.
An investment of $25,000 on December 18th of 2020 would have bought 1.1 BTC. If that same money had been invested in our managed mining operation, that investment would have yielded between 6 and 7 BTC over the course of 36 months, an over 600% increase in returns.

Comparing Managed Mining to Traditional Manual Mining

Traditional Bitcoin mining has a high barrier for entry for most investors, because the space is both constantly evolving and populated with well funded mining pools and corporations. Let’s explore these challenges:

Finding the “Best” Mining Rig.

After researching the rigs that have the best ratio of terahash to cost ratio, you’d then need to find a supplier that has them in stock within your time frame. For reference, Bitmain, the largest manufacturer of ASIC rigs, is currently sold out of their top of the line SHA 256 miners, and they might not be back in stock until October 2021. Those state of the art SHA 256 rigs ship from China, and thus are subject to customs fees, import taxes, and shipping expenses. On top of all that, current global conditions could easily cause a delay in the shipping process. Even when ordered, it may still be months before they could arrive.

A fully managed Bitcoin mining contract eliminates these barriers, as ASIC mining rigs have already been secured and are prepared to begin mining immediately upon contracting.

Finding an Affordable Power Source

This is the next hurdle for traditional Bitcoin miners, as ASIC rigs consume enormous amounts of power. It can be impossible to make a return on investment if the cost of running the rigs exceeds the value of the Bitcoin they mine. If electricity costs exceed 7 cents per kilowatt/hour, then it may be impossible to ever recoup costs, let alone make any sort of profit. Even if you have a cheap source of power, expect nearly all of it to be consumed by the rigs. This leaves many to turn to colocation farms, which are businesses that will provide space, internet, cooling, and electricity to your ASIC rig for a monthly fee. Not only will this fee eat into profits, but additional shipping expenses will be required to send your rig to them. Even then, many colocation farms have risen and fallen over the years due to a competitive industry and the highly volatile price of Bitcoin itself. A drop in BTC’s value can easily bankrupt a poorly managed or poorly planned farm.

Managed mining solutions do away with these hurdles as well, as the best and most resilient mining farms have already been contracted and the cheapest possible power sources have been negotiated. As a result, clients can expect 100% uptime.

Maintenance, Troubleshooting and Insurance.

These are the next barriers to entry for traditional miners. Next gen ASIC mining rigs such as the Antminer S19 or the S19 Pro require ample ventilation and consume 220v power. These rigs will need to run at top end speeds every minute of every single day, and that means inevitably they’ll require repair and maintenance. Inexperienced or unknowledgeable owners will likely be unable to maintain these rigs at optimal capacity.

The rigs used by managed mining are fully insured, meaning investors are guaranteed their contracted terahash.

Let’s compare managed mining to traditional (with an Antminer S19 Pro), by the numbers:

Fully Managed Mining – 1000Th
Total Upfront Cost: $39.95/Th ($39,950)
Running Cost Per Month: $1,690 ($1.69/Th & 0.8% Pool Fee assumed)
Uptime: 100%
Hosting Deposit Upfront: $0
Total Bitcoin Mined Over 36 Months: 5.8 – 6.2
Months to Breakeven: 8 – 10

Buy/Host S19 Pro 110Th – 9 units ($8,500/unit)
Total Upfront Cost: $77.27/Th ($76,500)
Running Cost Per Month: $1,300 ($0.06kWh & 2% Pool Fee assumed)
Uptime: Unknown
Hosting Deposit Upfront: $1,300 – $2,600
Total Bitcoin Mined Over 36 Months: 5.8 – 6.2
Months to Breakeven: 15 – 18

Minimum investment is $19,975 USD, $39.95/TH. For pricing options and to learn more, contact us: