Bitcoin Forum

Wish I had this farm lol  :o

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

Over a megawatt of power?!?!?

what kind of boards is that guy using?

Now only 4 million.

Next month 1 million

Wow that is pretty amazing. 8 million per month? :S

guess that they are 10ghs blades each

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.

Lulllz look at the guys hash rate from that interview:

http://i113.photobucket.com/albums/n219/jalbs/hash_zpsa390e925.png (http://s113.photobucket.com/user/jalbs/media/hash_zpsa390e925.png.html)

Hahahah good catch.. he's probably wondering why he hasn't mined some BTC lately.

Come on guys, that MegaBigPower's farm. those are Bitfury boards. each card is is 25+ Gh/s.

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.

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.

wouldn't it be funny if this was the cex.io farm

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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.

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  :P 

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.

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.

wow what a mining farm lol :)   

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. 

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.

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.