Should I build a 100 MW mining facility?

[Dato16]

Hi guys..Would really appreciate some feedback on this.

Is it still feasible to build large mining farms ( 100 MW ) or should the money be better invested elsewhere?

I have access to cheap electricity and also has the experience operating mining farms.
However the large capital required is the biggest concern. Or is the large capital played to my advantage as a large mining facility operator? In terms of competition.

The tariff I'm able to get is less than USD0.06 /kWh.

Any helpful suggestions or feedbacks are much appreciated.

Thank you.

[Dato16]

Now is a very dangerous time. If you have free electricity, then maybe you can make a profit in a year.

  I think that risk is a noble cause, but it's up to you

Thank you for your advice...

I do have access to free electricity as well..but it has other troubles associated with it..which i don't feel is for the long run..if you know what i mean..

but thank you

[franky1]

i have been running the math for years.

to be honest companies like bitmain are profitable because they control the manufacturing and the electric
they actually own some hydro electric and solar turbines. they also manufacture the asics and for each asic they sell gives them profit to keep atleast another asic for themselves for free.

EG an asic in 2017 retailed at $2k but could b produced for under $500. so as you can see, selling an asic made their mining literally free of costs because they could keep an asic and put funds towards the maintenance and electric also of the asic they keep.

the other part of bitmains strategy is that not all of the facilities ar run by them, by this i mean some of the blocks flagged as "antpool" are not blocks created in a facility antpool has decision control of the blocks. they simply lease out facilities to private investors and just ask for the rent, which is another income stream for them, without the headache.

so if you are serious about starting a mining farm also look into other strategies to make income. because buying asics at retail and paying out electric at 6cents(higher than most farms) and paying out facility leases and labour of people maintaining your asics 24/7 will eat into your 'profitability' far more than your competition.

right now it is better to buy btc than to mine it based on retail ASIC and electric.
the math is simple
at current average 50exa (50000000tera) thats 3571428 asics(14tera each)
even at their second hand sell off of $450/unit=$1,607,142,857.14
which if running for a year before unit replacement = $2452.90 hardware cost per btc(x/26/2016/12.5)
electric is $285714.24 an hour = $3819.99 a btc
=$6272.89
hardware and electric

yep (emphasis) second hand asics(limited supply so dont expect to get all 70k asics at this low price(numbers of your 100mw facility)
and its only the cost of the asics and electric.
once you add on the factory lease, labour the costs increase.

then you need to factor in how long it will take to actually get to be functional (building facility/delivery of material) the hash rate will rise meaning you move from having 70k asics of 3.5mill asics to being 70k asics of more than 3.5m asics so you will DROP from hashing 20% to under 20% before you even actually get to hash

so think long and hard about reducing costs, finding other revenue streams to support the business.
yes you may think as other pools think mining bitcoin is about just mining and hoarding and waiting for the btc price to ascend to cover things later.
but if you know the costs this second before even spending a penny is ATLEAST $6272(if lucky to get to capacity of second hand discounted asic prices, and while hashrate is ~50exa) just for hardware and electric
then its far cheaper to just buy btc on the market and hoard (unless you are savvi to have other supplemental income streams and cost cutting to be competitive)

[Steamtyme]

Depends on what you really want to do.

Franky1 gives a great breakdown, you could just grab up coins and sit on them; this works for people time and time again.

If you do go the facility route it's not a bad time to  get established but things can change very quickly. Here are a few topics you can read through to help you try and think of everything, like is that the toal cost of electricity including service fees.

Current List of Competitive Hardware - October 2018

There is some really efficient gear coming out. The second hand gear or EOL gear that is out there is a good price but at your electricity prices you have to wonder will they be efficient enough for long enough to make a profit. The Avalon 841 is not bad in that regard with the reliability and efficient downclocking. The S9 has become a little more efficient with the AB firmware but there are some reliability issues that are hit and miss.

First time/Small miner reference for getting started.

This was geared to home miners but the concepts apply.

Now if you do build this facility, I've often suggested to others set aside a portion of the facility to offer hosting. You would already be establishing a secure facility for your investment so that's taken care of. You will also be (you mention you are) or have someone knowledgeable in troubleshooting and mine management. This way you are bringing in some revenue to help cover operating costs to increase profitability.