Is it profitable or practical to set up a mining farm in the UK?

[Adam556]

Hi,

Someone I know owns an industrial site with six unused units on it, each around the size of a shipping container, all wired into the national grid.

They've floated the idea of setting up a Bitcoin mining farm given the recent explosion in the price of the coin.

They've got £50,000-£100k to drop on the project, possibly more if they can realistically make money.

My questions are:

Is it worth it? Will they make a profit after the initial expense given the UK's high electricity costs?

How many mining machines would, say, £50,000 buy?

What other things do they need to consider cost-wise, ie electrical infrastructure, cooling, fire safety etc?

Is there a better coin to mine than Bitcoin?

How difficult is it to set up the farm initially?

Any other factors they need to consider.


Many thanks,
Adam

[NotFuzzyWarm]

Use https://whattomine.com/asic  Select sha256, plug in the hash rate and power used, your power cost and a few other things. From what I've read about UK power rates it would NOT be profitable.

[ABCbits]

Is there a better coin to mine than Bitcoin?

Website i mentioned below mention mining LTC+DOGE could give you more profit per day. But you'll need to do your own research and speculation about whether it'll be better than mining BItcoin on longer term.

Use https://whattomine.com/asic  Select sha256, plug in the hash rate and power used, your power cost and a few other things.

OP also could use https://www.asicminervalue.com/ which mention list of ASIC along with it's hashrate and estimated price.

[FP91G]

Hi,

Someone I know owns an industrial site with six unused units on it, each around the size of a shipping container, all wired into the national grid.

Many thanks,
Adam

Please give me an answer to a few simple questions
What is the cost of electricity?
Maximum authorized power consumption?

Do you have noise regulations? Asics are noisy, you can also use immersion or water cooling, but it is more complicated and expensive.

[danieleither]

Assuming a unit cost of £0.25 GBP (which is about the best rate currently available in UK), if you bought the most efficient BTC miner currently available (S21 XP, 270T) you should expect to lose approximately £10.00 GBP per miner, per day.

You need access to cheap electricity (e.g. generate it yourself) in order to make profit from BTC miners.

It might be worth considering some Antminer L9 (Scrypt), these would currently make around £16 profit per unit, daily - but will have a much higher outlay. £50k would buy you about 5 or 6 units.

[Adam556]

Thanks for all the replies so far, the info is very useful. I'm getting the impression that this might not be a particularly could use of the funds, unless of course there's a big drop in electricity prices, or the price of crypto moons.

Does anyone know of any consultants who specialise in this sort of thing and could advise on the whole process?

Thanks.

[philipma1957]

Hi,

Someone I know owns an industrial site with six unused units on it, each around the size of a shipping container, all wired into the national grid.

They've floated the idea of setting up a Bitcoin mining farm given the recent explosion in the price of the coin.

They've got £50,000-£100k to drop on the project, possibly more if they can realistically make money.

My questions are:

Is it worth it? Will they make a profit after the initial expense given the UK's high electricity costs?

How many mining machines would, say, £50,000 buy?

What other things do they need to consider cost-wise, ie electrical infrastructure, cooling, fire safety etc?

Is there a better coin to mine than Bitcoin?

How difficult is it to set up the farm initially?

Any other factors they need to consider.


Many thanks,
Adam

high power costs means you need the most efficient gear.

if you want to mine BTC you need this gear:

https://altairtech.io/product/bitmain-antminer-s21-xp/

it is costly about 7,600 usd a unit or 6,208 pounds

if you sink in 100k you get 15 pieces = 93,120 pounds with left over for wiring filters cooling.

15 units do 4,050 th or  187.52 pounds a day  no power cost figured in. So in 500 days if power was zero you would break even.

the real question is what do you burn .  15 units burn 1335 kwatts a day that is 133.50 pounds of you power cost is .10 pounds a kwatt

or 187.52-133.50 = 54.02 pounds a day profit.  1740 days to pay off the gear.

So 94,000 pounds for the best gear to mine btc will be terrible at .10 pounds a kwatt. higher cost would be worse

what does your power cost?

.10 pounds      54.02 pound daily profit
.11 pounds      40.67 pound daily profit
.12 pounds      27.32 pound daily profit
.13 pounds      13.97 pound daily profit
.14 pounds          .62 pound daily profit


So If I were you I would not do it at .10 pounds a kwatt or higher power cost.

[danieleither]

high power costs means you need the most efficient gear.

if you want to mine BTC you need this gear:

https://altairtech.io/product/bitmain-antminer-s21-xp/

it is costly about 7,600 usd a unit or 6,208 pounds

if you sink in 100k you get 15 pieces = 93,120 pounds with left over for wiring filters cooling.

15 units do 4,050 th or  187.52 pounds a day  no power cost figured in. So in 500 days if power was zero you would break even.

the real question is what do you burn .  15 units burn 1335 kwatts a day that is 133.50 pounds of you power cost is .10 pounds a kwatt

or 187.52-133.50 = 54.02 pounds a day profit.  1740 days to pay off the gear.

So 94,000 pounds for the best gear to mine btc will be terrible at .10 pounds a kwatt. higher cost would be worse

what does your power cost?

.10 pounds      54.02 pound daily profit
.11 pounds      40.67 pound daily profit
.12 pounds      27.32 pound daily profit
.13 pounds      13.97 pound daily profit
.14 pounds          .62 pound daily profit


So If I were you I would not do it at .10 pounds a kwatt or higher power cost.

Power is minimum £0.25 ($0.30) in UK, typically higher. As I've already stated, unless the OP has access to free electricity or generates his own, mining BTC will not be profitable for him, in fact he will lose A LOT of money.

[philipma1957]

high power costs means you need the most efficient gear.

if you want to mine BTC you need this gear:

https://altairtech.io/product/bitmain-antminer-s21-xp/

it is costly about 7,600 usd a unit or 6,208 pounds

if you sink in 100k you get 15 pieces = 93,120 pounds with left over for wiring filters cooling.

15 units do 4,050 th or  187.52 pounds a day  no power cost figured in. So in 500 days if power was zero you would break even.

the real question is what do you burn .  15 units burn 1335 kwatts a day that is 133.50 pounds of you power cost is .10 pounds a kwatt

or 187.52-133.50 = 54.02 pounds a day profit.  1740 days to pay off the gear.

So 94,000 pounds for the best gear to mine btc will be terrible at .10 pounds a kwatt. higher cost would be worse

what does your power cost?

.10 pounds      54.02 pound daily profit
.11 pounds      40.67 pound daily profit
.12 pounds      27.32 pound daily profit
.13 pounds      13.97 pound daily profit
.14 pounds          .62 pound daily profit


So If I were you I would not do it at .10 pounds a kwatt or higher power cost.

Power is minimum £0.25 ($0.30) in UK, typically higher. As I've already stated, unless the OP has access to free electricity or generates his own, mining BTC will not be profitable for him, in fact he will lose A LOT of money.

Yeah he has no shot at that price.

[mindrust]

There are probably far better opportunities out there for that amount. I don’t advise mining to anybody unless he somehow is able to get nearly or completely free electricity which is not possible in most situations.

If you are interested in mining, why not buy the product directly and hodl instead?

If the btc prices tank, miners that operate in a he developed countries will go bankrupt quickly because electricity is usually expensive in those countries.

50-100k pounds is a serious amount of money. I would choose some other business.

[Adam556]

Thanks once again for all the replies and valuable insight. Judging by what everyone's said I think it's a non-starter. It would be easier and more profitable just to buy the crypto!

[philipma1957]

Thanks once again for all the replies and valuable insight. Judging by what everyone's said I think it's a non-starter. It would be easier and more profitable just to buy the crypto!

YEAH  9 PENCE or lower per kwatt can work.

Maybe.  I AM AT 8  us cent about 7 pence a kwatt.

I earn about 3000 usd a month I burn about 1250 usd

I have 4x t21s
2x s21xps
1x l7

You could use usa host and usa seller and match what I am doing for about 30k usd

And spend the rest on coin.

I use altairtech.io as the gear seller

I USE iowaminingllc@gmail.com  as the host.  I can talk via pm if you want to use those guys

[Adam556]

I appreciate all the info, many thanks!