Largest Bitcoin Mine In The UK

[Group Bitcoin]

To what extent is this mine (groupbitcoin.com) still operating?

I cannot see groupbitcoin.com covering costs, let alone making any money, as it is not operating in a low cost electricity area. Electricity is 0.12 pound sterling per KWh or $0.19 USD from groupbitcoin.com figures.

Assuming a 0.9 J/Gigahash efficiency of the hardware the electricity costs would be $0.17 per terrahash hour (0.9*$0.19).

But mining is currently only returning $0.24 USD per terrahash hour.

After electricity costs there is only a margin of $0.07  (0.24-*.9*0.19) per terabyte hour, or $50 per month per terrabyte for groupbitcoin to pay off the initial hardware cost, cover the floor space rent, any labour costs as well as all other costs.

And this amount to cover all costs other than electricity will fall from $0.07 to under $0.05 per terrahash/hour after the next difficulty change.

Even worse, groupbitcoin say their hardware costs are $60 pound sterling per terrahash, based on 4U cost for a terrahash at $15 sterling per U.  This is $97 per month per terrahash or $0.13 per terrahash hour.  This is well beyond the $0.07 margin over electricity cost which means groupbitcoin would already be running at a significant loss (assuming it is still operating).

We started in late 2013 when difficulty was less than 1 million.

We sold 1 year mining contracts for a few months where the running costs were included in the cost per GH/s. We then started selling contracts where the initial cost was just the cost of the hardware and the running costs were deducted each month, they end when the hardware can't pay it's running costs if that makes sense which is unfortunately looking very soon with the price of Bitcoin at the moment and the difficulty almost at 30m. We've brought our costs down lots to the point where it literally just covers the rent but aside from that there's not much else we can do. The 1 year contracts are unaffected.

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[odlal]

We started in late 2013 when difficulty was less than 1 million.

We sold 1 year mining contracts for a few months where the running costs were included in the cost per GH/s. We then started selling contracts where the initial cost was just the cost of the hardware and the running costs were deducted each month, they end when the hardware can't pay it's running costs if that makes sense which is unfortunately looking very soon with the price of Bitcoin at the moment and the difficulty almost at 30m. We've brought our costs down lots to the point where it literally just covers the rent but aside from that there's not much else we can do. The 1 year contracts are unaffected.

Question : Previously on your website the pre-pay (so-to-speak) one year contracts were offered at a significantly LOWER price per GH/s (almost half) than was the price of the so-called "Indefinite" contracts so how is it possible for the 12 month contracts to remain unaffected yet according to the website today (as of 30th Sept) the "Indefinite" contracts (quote) "won't be running for much longer" ?

http://www.groupbitcoin.com/blogs/news/15503977-due-to-electricity-running-costs-in-the-uk-vat-and-other-commitments-were-now-no-longer-accepting-new-customers

Thanks,
Odlal.

[odlal]

The 1 year contracts are unaffected.

Perhaps they're unaffected in terms of being able to continue to run for the whole twelve months but on the other hand they surely must be severely affected by the rapid increase in difficulty over the same period of time ?

In other words although they'll be mining as such, the actual creation of new bitcoins will be FAR FAR LESS than was anticipated right ?

[silversurfer1958]

Looks nice, it doesn't matter what Photos you supply though, people will still question.
Good luck with your venture though.
I've got a 1.3 MH scryupt Miner from Gaw sitting here doing nopthing, might try to get it hashing,
how much to host it.

[Group Bitcoin]

Looks nice, it doesn't matter what Photos you supply though, people will still question.
Good luck with your venture though.
I've got a 1.3 MH scryupt Miner from Gaw sitting here doing nopthing, might try to get it hashing,
how much to host it.

Hello, thanks but unfortunately we're not taking new customers anymore as it's unlikely you'll ever ROI with the electricity costs in the UK. We got a bulk deal at 12p per Kwh but even that doesn't come close to areas like Washington. You're best off looking to colocate in another country.

The 1 year contracts are unaffected.

Perhaps they're unaffected in terms of being able to continue to run for the whole twelve months but on the other hand they surely must be severely affected by the rapid increase in difficulty over the same period of time ?

In other words although they'll be mining as such, the actual creation of new bitcoins will be FAR FAR LESS than was anticipated right ?

The original 12 month mining contracts run for 12 months regardless of mining difficulty or Bitcoin value as the year of running costs was factored into the cost per GH/s but yes the revenue will be far less than a few months back. We also sold 'indefinite' contracts with no fixed end date they end when the monthly revenue from mining can't pay for the electricity/running costs which will be very soon, if Bitcoin had kept going up they'd last longer and be far more profitable than the one year contracts. The cost per GH/s was the cost of the hardware, setup, shipping taxes etc only. When we started last year we certainly didn't expect such extreme difficulty rises, the network is now almost 250 PH/s.

[zyzzbrah]

That poster in between the 2 mining rigs looks great. I wish there was actual underground huge mining caves.

[odlal]

The 1 year contracts are unaffected.

Perhaps they're unaffected in terms of being able to continue to run for the whole twelve months but on the other hand they surely must be severely affected by the rapid increase in difficulty over the same period of time ?

In other words although they'll be mining as such, the actual creation of new bitcoins will be FAR FAR LESS than was anticipated right ?

The original 12 month mining contracts run for 12 months regardless of mining difficulty or Bitcoin value as the year of running costs was factored into the cost per GH/s but yes the revenue will be far less than a few months back. We also sold 'indefinite' contracts with no fixed end date they end when the monthly revenue from mining can't pay for the electricity/running costs which will be very soon, if Bitcoin had kept going up they'd last longer and be far more profitable than the one year contracts. The cost per GH/s was the cost of the hardware, setup, shipping taxes etc only. When we started last year we certainly didn't expect such extreme difficulty rises, the network is now almost 250 PH/s.

Thanks for the reply and thanks for the Payout yesterday

[odlal]

The original 12 month mining contracts run for 12 months regardless of mining difficulty or Bitcoin value as the year of running costs was factored into the cost per GH/s but yes the revenue will be far less than a few months back. We also sold 'indefinite' contracts with no fixed end date they end when the monthly revenue from mining can't pay for the electricity/running costs which will be very soon, if Bitcoin had kept going up they'd last longer and be far more profitable than the one year contracts. The cost per GH/s was the cost of the hardware, setup, shipping taxes etc only. When we started last year we certainly didn't expect such extreme difficulty rises, the network is now almost 250 PH/s.

If you foresee the likelihood of the Indefinite contracts ending is going to be "very soon" is there any chance of switching to Weekly payouts in the meantime please ?

An Idea : Just mulling things over a bit here (no pun intended) but if you could switch to a Weekly payout system then there might come a point in the near future whereby for the sake of keeping my contracts running (whilst hoping for the BTC price to rise again) I would actually PAY YOU some small amount of BTC because depending on how the market seems to be doing at that point it could be in my long term interest to make such a payment and play it by ear for a while ?

PS : Good luck with your Mine and let's pray the market recovers back to where it was a mere three months ago or so

[cryptomad]

happy mining everyone.

Can't see clearly what is it, can you take a closer picture..

So is the background an actual tunnel or is that a picture?

[ChuckBuck]

happy mining everyone.

Can't see clearly what is it, can you take a closer picture..

So is the background an actual tunnel or is that a picture?

It's a large picture on the wall of a mining tunnel.  Creates an illusion of depth or walking into a deep dark mining tunnel from far away it appears.

[coiners99]

happy mining everyone.

http://cdn.shopify.com/s/files/1/0306/3181/files/panorama_large.jpg?981

Can't see clearly what is it, can you take a closer picture..

So is the background an actual tunnel or is that a picture?

It's a large picture on the wall of a mining tunnel.  Creates an illusion of depth or walking into a deep dark mining tunnel from far away it appears.

this pict make me think so hard, i think that background is server's racks -_-
but nice setup guys

[STT]

dam it, all this time Im thinking these guys are like james bond villians deep under london mining bitcoins like they coming from the centre of the earth and now i find its just a monster poster.  I need one of those