And you think it’s still possible to find energy under 4 cents? Does it have to be very big contracts, for that to be possible, or not?
"Big contracts" is not a very accurate statement, it's more like "HUGE contracts" like hundreds of MWs worth of power, we talking the billions level of money, not just millions, as Phill said, it's Mara, and the big boys trying to kill every last bit of competition from the lower-tier folks, in fact, given that those big guys have other expenses which are usually higher than the lower-tier folks, they are also in deep shit to some extent, it's now a matter of who has the longer breath, who would chicken out first.
And then you got the folks that you don't often hear about, huge farms are being built in places like Oman with power rates below 4 cents, the last article I read talked about $350M just for constructing the site, you now have crazy Arab money added to the already crazy U.S money, to an industry that is impossible to predict, it's basically a shit-show and things will only get worse for small miners, and when I say small -- that includes the 1-5MW folks, the game has been upped to 50MW and above, you can no longer flex your 1MW farm, it's game over.
yeah if you study gold mining they lowered profits bigly for mining.
a “small” guy is not going to be under 5 cents.
by small a 1.2 megawatt container.
if you load it with t21s and set t21 and set 160 th. they pull 2.5 kwatts
you can run 300 units. burning 750 kwatts.
cost is 300 x 3000 = 900,000
the container and the transformer push 200,000
so 1.1 million.
and you could crank it up 🆙 if mining gets hot.
but right now that 1.1 million setup makes about 1000 a day profit.
after power. so you laid out 1.1 million to make 365000 in year one.
if the big miners grind the 4 cent a th number down to 3 cent a th number that 365k drops to.
182k.
so here is how it works.
160 x 4 = 6.40 earned against 60 kwatts x 5 cent or 3 bucks is 3.40profit x 300 = 1020 a day
but 160 x 3 = 4.80 earned against 60 x 5 or 1.80 x 300 = 540 a day
huge difference if they can for e profits lower.
how would you like to lay out 1.1 million and make back only 185k you would be close to 900k in the hole.
this is becasue your 1 container with five cent power is going up against 200 container miner with 2-3 cent contract.
they know if they drop your earnings on 1.1 million under 200k you will never clear the investment nut.
it is done for miners unless you are tiny and do not look at the money spent as a profit thing.
you can small mine to a blind address and just leave the money alone. you earnings will be anonymous to a certain degree.
