[ANN] Spondoolies-Tech - carrier grade, data center ready mining rigs

[RealMalatesta]

Even if it's a single DC deploying 20PH+, certainly they would do it in stages, no? Do you really think they spend weeks setting up and then flip the master-breaker and BOOM, 20PHs?

There are basically two scenarios I can think of why they would set them up in stages, test them on a couple of pools, take them down to test the next bulk and the switch them on bulk by bulk. However, none of these scenarios looks good for BitFury in the long term....

[Guy Corem]

There are basically two scenarios I can think of why they would set them up in stages, test them on a couple of pools, take them down to test the next bulk and the switch them on bulk by bulk. However, none of these scenarios looks good for BitFury in the long term....

June 18 - June 29 was BitFury Georgian DC. 20MW deployment in 1.5 months. They've started in mid May.
What we see now is what George Kikvadze calls "Summer Surprise". It's their Icelandic DC.
I believe we can expect a continues cadence of 20 PH/s from BitFury every 2 months.

[tempestb]

They can turn them all on at once.  It's about having the power and cooling ready as much as the hardware.  If the data center was setting up the power and cooling while the machines were being installed, then it could all come up at once.  But realistically the hash rate is just based on the coins found over X amount of time.  So until you get a longer period of time, you don't know if you're looking at luck or real hash.

I wonder if these data centers are really profitable for Bitfury.  They add more hash, but then raise the difficulty on themselves and their other data centers.  As folks like Bitmain continue to sell container ships full of miners, it makes massive deployments questionably profitable because of the work towards deploying such an outfit.  The home miner doesn't pay a staff, doesn't pay to rent a facility (At least it isn't calculated into their mining profits), doesn't pay for installation equipment, etc.  The home miner is at a big advantage and will eventually erode the data center's profits regardless of where they are located simply because the data center needs to pay a staff, and the organization itself needs to pay a salary to its people.  Where as the home miner only pays attention to their price per kwh.  A staff and rent is going to be much higher than whatever power advantage they are going to get out in Iceland on price.  Not to mention they have to pay for all their engineering and next generation engineering. 

In the short term, they will earn some coins, but over the long haul, unless they plan to keep those coins and speculate, it's likely they will go out of business.  And one day the difficulty will drop down a few percentage points. 

[RealMalatesta]

June 18 - June 29 was BitFury Georgian DC. 20MW deployment in 1.5 months. They've started in mid May.
What we see now is what George Kikvadze calls "Summer Surprise". It's their Icelandic DC.
I believe we can expect a continues cadence of 20 PH/s from BitFury every 2 months.

Which is not nice :-)

However, that should be enough motivation to you for working at some new 12 Th/s-miners for the ordinary people :-)

[Guy Corem]

They can turn them all on at once.  It's about having the power and cooling ready as much as the hardware.  If the data center was setting up the power and cooling while the machines were being installed, then it could all come up at once.  But realistically the hash rate is just based on the coins found over X amount of time.  So until you get a longer period of time, you don't know if you're looking at luck or real hash.

I wonder if these data centers are really profitable for Bitfury.  They add more hash, but then raise the difficulty on themselves and their other data centers.  As folks like Bitmain continue to sell container ships full of miners, it makes massive deployments questionably profitable because of the work towards deploying such an outfit.  The home miner doesn't pay a staff, doesn't pay to rent a facility (At least it isn't calculated into their mining profits), doesn't pay for installation equipment, etc.  The home miner is at a big advantage and will eventually erode the data center's profits regardless of where they are located simply because the data center needs to pay a staff, and the organization itself needs to pay a salary to its people.  Where as the home miner only pays attention to their price per kwh.  A staff and rent is going to be much higher than whatever power advantage they are going to get out in Iceland on price.  Not to mention they have to pay for all their engineering and next generation engineering.  

In the short term, they will earn some coins, but over the long haul, unless they plan to keep those coins and speculate, it's likely they will go out of business.  And one day the difficulty will drop down a few percentage points.  

BitmainTech contribution to the hash-rate is insignificant compare to BitFury and Innosilicon.
BitFury builds extremely cheap DCs. They're ruthless in their effort to achieve 80% of the network (40% self-mine, 40% sell of miners and contracts).
The only good thing I can say about them, is that they don't constantly convert like KNC. When they do convert, they're doing it off the exchanges.

[BitCoin Operated Boy]

June 18 - June 29 was BitFury Georgian DC. 20MW deployment in 1.5 months. They've started in mid May.
What we see now is what George Kikvadze calls "Summer Surprise". It's their Icelandic DC.
I believe we can expect a continues cadence of 20 PH/s from BitFury every 2 months.

That's called GREED

[opentoe]

No. But I do know that their logistic can do 20 metric tons of equipment per day.

Less profit for all of us and less more for those waiting for hardware and even less less more for those about to order. Maybe a price adjustment to keep aligned?

[Biodom]

It's more complex than pure GREED. "BitFury" (Valery, the "CTO" - the ASIC designer) has aspirations for world domination through Bitcoins. Really.

Seriously? if so, then he already missed his chance because more than 62% of all bitcoins has been produced already (~13.1 mil=62.3%)

[opentoe]

Seriously? if so, then he already missed his chance because more than 62% of all bitcoins has been already produced (~13.1 mil=62.3%)

Not sure what happened here, but the SP-TECH post is gone. Only the response is here. I guess it was deleted?
Anyway, an aspiration for world domination takes plain old cash. And the only way to get that much is to be as greedy as you can be.
Excessive desires or obsessions all lead to greed.

[jtoomim]

I wonder if these data centers are really profitable for Bitfury.  They add more hash, but then raise the difficulty on themselves and their other data centers.  As folks like Bitmain continue to sell container ships full of miners, it makes massive deployments questionably profitable because of the work towards deploying such an outfit.  The home miner doesn't pay a staff, doesn't pay to rent a facility (At least it isn't calculated into their mining profits), doesn't pay for installation equipment, etc.  The home miner is at a big advantage and will eventually erode the data center's profits regardless of where they are located simply because the data center needs to pay a staff, and the organization itself needs to pay a salary to its people.  Where as the home miner only pays attention to their price per kwh.  A staff and rent is going to be much higher than whatever power advantage they are going to get out in Iceland on price.  Not to mention they have to pay for all their engineering and next generation engineering. 

Big DCs are much more efficient than mining at home. It's basic economy of scale stuff. You get better electricity prices, more economical cooling, cheaper electrical upgrades, and the power density makes the costs of rent or the mortgage small. The biggest recurring expense is electricity. If Bitfury is paying $0.04 or $0.05/kWh in Iceland, and the average home miner is paying $0.10 to $0.15, there's no question about it: the home miner will have to shut off his equipment when one of the next few Bitfury DCs comes online.

[Biodom]

If Bitfury is paying $0.04 or $0.05/kWh in Iceland, and the average home miner is paying $0.10 to $0.15, there's no question about it: the home miner will have to shut off his equipment when one of the next few Bitfury DCs comes online.

I don't think that this is a correct assessment. Home miner could be doing mining for fun, as a hobby, or something else. Home miner can also SELL his used equipment. Where Bitfury will sell their used miners? As long as home miner comes ahead in comparison with straight buying coins (or even in comparison with just holding cash), home mining will continue.

[opentoe]

I don't think that this is a correct assessment. Home miner could be doing mining for fun, as a hobby, or something else. Home miner can also SELL his used equipment. Where Bitfury will sell their used miners? As long as home miner comes ahead in comparison with straight buying coins (or even in comparison with just holding cash), home mining will continue.

In my opinion home mining will only continue if the user has enough hashing power to sustain a profit. If someone continues to mine at home losing money, I'm not sure what that's called? I guess all "hobbies" end up costing us more in the long run a lot of the time.

[Collider]

It is actually quite simple.

Bitfury produces mining hardware, and around 50% was always used for their own mining effort (as margins where HUGE at the start and Bitfury had the most efficient chip for around 1 year).

They can either sell their produced hardware for a quick profit (which is what most smaller / capital hungry manufacturers do / have to do) or mine with it themselves.

As Bitfury has enormous funding, they do not need a quick profit on their investment in order to produce the next batch of hardware.

Bifury has realised that there is more profit to be made easily when wholesaling / building turnkey datacenters for investors / customers and/or mining themselves.



The majority of mining will move into datacenters / dedicated facilities before long, as equipment is cheaper to maintain there (scaling electricity and management costs etc.)

Miners / investors will still be able to try and make a profit on their investment by either purchasing shares of maintained power, or investing into an equipment "fund".

[Bicknellski]

It is actually quite simple.

Bitfury produces mining hardware, and around 50% was always used for their own mining effort (as margins where HUGE at the start and Bitfury had the most efficient chip for around 1 year).

They can either sell their produced hardware for a quick profit (which is what most smaller / capital hungry manufacturers do / have to do) or mine with it themselves.

As Bitfury has enormous funding, they do not need a quick profit on their investment in order to produce the next batch of hardware.

Bifury has realised that there is more profit to be made easily when wholesaling / building turnkey datacenters for investors / customers and/or mining themselves.



The majority of mining will move into datacenters / dedicated facilities before long, as equipment is cheaper to maintain there (scaling electricity and management costs etc.)

Miners / investors will still be able to try and make a profit on their investment by either purchasing shares of maintained power, or investing into an equipment "fund".

+1 Nail hit straight on the head.

If you are not looking toward PH/s then I suspect you will be shutting it down. You need some efficiency to keep playing with the big boys and you need to pool your resources. Home mining is not going to cut it anymore.

[bobsmoke]

Hello, quick question regarding the SP30 installation:

Does it bring power cables?
Does it bring Ethernet cable?
Does it bring mounting ears and respective screws?

thx

[BitCoin Operated Boy]

Hello, quick question regarding the SP30 installation:

Does it bring power cables?
Does it bring Ethernet cable?
Does it bring mounting ears and respective screws?

thx

I think you may need to get your own cables according to Dogie's review:
https://bitcointalk.org/index.php?topic=725760.0

[jtoomim]

Does it bring power cables?
Does it bring Ethernet cable?
Does it bring mounting ears and respective screws?

Sort-of. You will need two power cables for plugging in a standard desktop computer or monitor in your country (cables with female C13 on one end). Spondoolies ships the SP30s with cables from C13/C14 to whatever the SP30 needs as input.

No. Most datacenters will make their own ethernet cables in order to get the cable length optimal.

Ears yes, screws no.

[bobsmoke]

Does it bring power cables?
Does it bring Ethernet cable?
Does it bring mounting ears and respective screws?

Sort-of. You will need two power cables for plugging in a standard desktop computer or monitor in your country (cables with female C13 on one end). Spondoolies ships the SP30s with cables from C13/C14 to whatever the SP30 needs as input.

No. Most datacenters will make their own ethernet cables in order to get the cable length optimal.

Ears yes, screws no.

thank you

[s1gs3gv]

This is all going to be very funny when BTC crashes to USD $10 and stays there.

~L)L~

[jtoomim]

Zvi, can you try to include changelogs with your FW releases? Would be nice.