My Plan

[Arcane423]

I have developed a plan for starting my first mining operation, and I would like to see if anyone has done anything similar or has any advice or pitfall warnings for me. I own a piece of property located 8 hours away from where I currently live and work. This property has infinite access to free natural gas. It also has access to falling cool mountain water that can either be used in a coolant system or as an alternative power source.

My plan is to build a small shed structure for the mining rigs and purchase a prime power natural gas generator to power the entire assembly. Prices of these generators vary (I cannot find a reliable source of prime power industrial generators, most all I can find are Standby generators which I do not feel will last) as I check eBay but I figure that I can get one in good shape for $2000-$4000 that puts out 30-65 kW.

I then plan to fill the building with X amount of Bitmain T9+'s based off of whatever generator I end up selecting. Reason being, with free power these are much more profitable in the short term due to their extremely low purchase price ($280) and can pay off their own cost and generator cost in 6-8 months.

All in all, for the cost of the generator, power conditioner, building, T9s, cabling and other extremities, and cooling system, I expend to spend about $15k.

Please let me know what you think and if you have any criticisms or suggestions

Thank you

[1715475034]

1715475034

[Steamtyme]

First, you should move this to mining speculation as your requesting opinions. You can move the topic using the button by scrolling down to the bottom left.

I'm wondering what you mean about a source of free unlimited Natural Gas, to power the generator. Someone must be paying for it, but that's for you to handle. Just make sure that if there is a chance you will be footing the bill on this that you are prepared.

As far as machines go, you should still consider going with a more efficient model. This will allow you to put more machines online, thus increasing your mined BTC. I like the 841's - they are efficient, reliable, and are backed by a 2 year warranty. Being from the US, you can order from Blokforge.

The property 8 hours away - Is it secure and out of the way? Can you get a reliable internet source there?

[philipma1957]

first off you must have  good generators not bull shit ebay used.

second  if you have free gas  you can only lose money if the gear dies.

So you must buy  avalon 841's  since they give you 2 year warranty.

I had a link for real generators I will get back to you.

https://www.titanpower.com/products/generators/cummins.php
https://www.titanpower.com/downloads/CumminsFullLinePowerSolutionsBrochure%20(2).pdf
https://power.cummins.com/cummins-upgrades-qsv91-gas-series-offer-superior-robustness-and-greater-flexibility

[Arcane423]

Yeah if you have generators that would be great, I have been having trouble finding anything that isn't a standby generator. Is the longevity of the T9's not very good, is that why you suggest the Avalons?

[philipma1957]

Yeah if you have generators that would be great, I have been having trouble finding anything that isn't a standby generator. Is the longevity of the T9's not very good, is that why you suggest the Avalons?

posted the link

avalon  gives and honors 2 year warranty

[Steamtyme]

I also found these by CAT, they might have something that suites your needs as well.

https://www.cat.com/en_US/products/new/power-systems/electric-power-generation/gas-generator-sets.html

Another bonus to the Avalons over other manufacturers at the moment is they don't always require you send your machine to them for repair. There are repair facilities available, but the design of their machines make it easy to diagnose and replace parts yourself. Here is an example of diagnosing and repairs.

[Arcane423]

First, you should move this to mining speculation as your requesting opinions. You can move the topic using the button by scrolling down to the bottom left.

I'm wondering what you mean about a source of free unlimited Natural Gas, to power the generator. Someone must be paying for it, but that's for you to handle. Just make sure that if there is a chance you will be footing the bill on this that you are prepared.

As far as machines go, you should still consider going with a more efficient model. This will allow you to put more machines online, thus increasing your mined BTC. I like the 841's - they are efficient, reliable, and are backed by a 2 year warranty. Being from the US, you can order from Blokforge.

The property 8 hours away - Is it secure and out of the way? Can you get a reliable internet source there?

It is off the beaten path, but has internet service available. As far as security goes, I have a trusted relative living in a home on the property who is going to assist with maintaining the generator as that fits his background. He can also preform other basic functions like mailing parts off for warranty or etc as needed. I plan to do all the diagnostics via accessing a remote desktop setup in the mining room. The gas is entirely free, the well has been dug for decades and mineral rights are owned by me. A few miles away is a similar property owned by a relative and she sells her gas line to a gas company that pays her $2k-$3k a month for what they pull out of it. That has been happening for decades.

[wtfonly16]

I also found these by CAT, they might have something that suites your needs as well.

https://www.cat.com/en_US/products/new/power-systems/electric-power-generation/gas-generator-sets.html

Another bonus to the Avalons over other manufacturers at the moment is they don't always require you send your machine to them for repair. There are repair facilities available, but the design of their machines make it easy to diagnose and replace parts yourself. Here is an example of diagnosing and repairs.

he said $15k not $5M...

and if your using generators to power sensitive equipment like computers (avalons) you need AVR's in the mix, however im did sinbensol on a panel backfeed from some petro honda 6500watter and my caputers dint blow up so...

[Arcane423]

and if your using generators to power sensitive equipment like computers (avalons) you need AVR's in the mix, however im did sinbensol on a panel backfeed from some petro honda 6500watter and my caputers dint blow up so...

I was planning on using a power conditioner, they are pretty affordable and will do the job nicely

[Steamtyme]

It is off the beaten path, but has internet service available. As far as security goes, I have a trusted relative living in a home on the property who is going to assist with maintaining the generator as that fits his background.  I plan to do all the diagnostics via accessing a remote desktop setup in the mining room.

 The gas is entirely free, the well has been dug for decades and mineral rights are owned by me.

Nice sounds like a good way to use what you already have access to. Good luck with the project, hopefully you can find a decently priced generator.

[minefarmbuy]

Are you in the US? What were you thinking on spending on asics specifically or what unit count where you thinking? I would go with canaan, we can broker a deal pretty easily save some more money. If you're set on T9+ can do that or step up to the T2 or even the s9i/j. Lot's of options lots routes to take and now is time to buy gear.

Edit: now is time to buy gear if you really set on mining.

[Miner159]

avalon  gives and honors 2 year warranty

Phillip, can you please provide a link where Canaan says about their 2 year warranty? All i can find is 90 days. Thanks!

[ccgllc]

Pipe dream...with no chance

Not really.  I have a friend in Kentucky who is also thinking about do this.  They lease the oil rights on their property and get natural gas as a free by-product.  Not an unlimited amount of course, but easily enough to power a 10-15KW generator.

They are thinking of spending the $2K other neighbors have spent to put in a generator to power their horse farm.

[Arcane423]

Pipe dream...with no chance

Can you elaborate why? That is why I am having this discussion, to iron out and potential kinks. I am an electrical engineer by trade so I posses the necessary skills to wire the generator it is simply a matter of sourcing one. This is the only part that would be difficult in my opinion, the rest is just plugging in your miners like any other set up

Are you in the US? What were you thinking on spending on asics specifically or what unit count where you thinking? I would go with canaan, we can broker a deal pretty easily save some more money. If you're set on T9+ can do that or step up to the T2 or even the s9i/j. Lot's of options lots routes to take and now is time to buy gear.

Edit: now is time to buy gear if you really set on mining.

After hearing what some users suggested here I am considering the Avalons, having the Blockforge distribution is definitely better than dealing with large customs fees and long ship times.

[NotFuzzyWarm]

Ja. I can HIGHLY recommend Blockforge and use for them for all my Avalon and PSU purchases. They also do by-the-pallet orders as well, all shipped from Arizona.

Checkout http://www.criticalpower.com/generators/?orderby=size&order=desc&kw-output=all&fuel-type=natural-gas&mobility=stationary for their offering on both new and used large NG-fueled generators. Many rated as Prime power meaning months of 24x7 operation before routine maint. mainly consisting of consisting of changing filters and refilling the large external engine oil tank.

[minefarmbuy]

After hearing what some users suggested here I am considering the Avalons, having the Blockforge distribution is definitely better than dealing with large customs fees and long ship times.

Just ask for a quote, can't do you harm to find out what our brokers can offer. Any reseller has worked import fees into their pricing already.

Regardless shop around with the bear market maybe retail sites are liquidating since new hardware in on the horizon.

[Steamtyme]

Phillip, can you please provide a link where Canaan says about their 2 year warranty? All i can find is 90 days. Thanks!

https://blokforge.com/product/avalon-841/

If you read the product description on the blokforge page it states the 2 year warranty. They do a great job as a distributor. Sometimes the info on the official Canaan page is carried over from previous pages and they forget to update some details.

Edit: You can also find the Blokforge thread here on the forum

[minefarmbuy]

Just an update and FYI.

Canaan's warranty is 180 days worry free and 2 year limited. At least with current product is what we're told by them.

[coolcoinz]

I read about that natural gas generator and can tell you that there are ways to modify a normal gasoline generator to run on natural gas. There are ready-made kits available that you can use with your generator and make it connect in the place of of your stove or heater. There are even Youtube videos explaining it and saying that it's cheaper, but you'd have to do the math by yourself.

[NotFuzzyWarm]

I read about that natural gas generator and can tell you that there are ways to modify a normal gasoline generator to run on natural gas. There are ready-made kits available that you can use with your generator and make it connect in the place of of your stove or heater. There are even Youtube videos explaining it and saying that it's cheaper, but you'd have to do the math by yourself.

The problem with that is a 'normal' generator is NOT rated to run 24x7 for weeks/months at a time. Prime-power rated gensets have vastly different lubrication and cooling systems not to mention being far more robustly built than stand-by units are.