What type of capital investment would be needed to set up a mining farm?

[coinits]

I have a 14 x 20 space and I'm thinking of setting up a btc mining farm. What kind of rigs and systems do I need to pull this off. At current btc prices I would like to haul in a net profit of 50 k per year. This would be under a legit business as I could write off costs.

In Canada if that matters.

Thanks

[1715055346]

1715055346

[Korbman]

I have a 14 x 20 space and I'm thinking of setting up a btc mining farm. What kind of rigs and systems do I need to pull this off. At current btc prices I would like to haul in a net profit of 50 k per year. This would be under a legit business as I could write off costs.

In Canada if that matters.

Thanks

280m² is a fairly substantial amount of space (at least I'm presuming it's in meters since you mentioned you're in Canada). Since you seem to have that covered, your next objectives are to secure power and cooling / ventilation.

What is your average cost per kWh?
What is the cost to own the space (either rent or mortgage)?

A net income of $50k per year would mean roughly BTC80-90 at current prices. Let's assume your ongoing operational expenses (energy, cooling equipment, rent, internet, miscellaneous maintenance) amount to the same amount...meaning in 12 months you've generated BTC180 (BTC90 for expenses, BTC90 net profit...all assuming a stable BTC/USD or CAD price).

For an entire year, the Bitcoin network of miners will generate roughly BTC1,314,900 until the next block reduction in ~2016. To generate a revenue of BTC180 over the course of 12 months, you will need enough equipment to constantly maintain 0.0137% of the network, or approximately 19.18TH/s at the current network rate (~140PH/s). This would mean 45 BitMain S3 miners to start, increasing your amount of hardware over time to compensate for the difficulty increases.

This is just a very brief overview of course, and the caveats in this game are plentiful.

[coinits]

I have a 14 x 20 space and I'm thinking of setting up a btc mining farm. What kind of rigs and systems do I need to pull this off. At current btc prices I would like to haul in a net profit of 50 k per year. This would be under a legit business as I could write off costs.

In Canada if that matters.

Thanks

280m² is a fairly substantial amount of space (at least I'm presuming it's in meters since you mentioned you're in Canada). Since you seem to have that covered, your next objectives are to secure power and cooling / ventilation.

What is your average cost per kWh?
What is the cost to own the space (either rent or mortgage)?

A net income of $50k per year would mean roughly BTC80-90 at current prices. Let's assume your ongoing operational expenses (energy, cooling equipment, rent, internet, miscellaneous maintenance) amount to the same amount...meaning in 12 months you've generated BTC180 (BTC90 for expenses, BTC90 net profit...all assuming a stable BTC/USD or CAD price).

For an entire year, the Bitcoin network of miners will generate roughly BTC1,314,900 until the next block reduction in ~2016. To generate a revenue of BTC180 over the course of 12 months, you will need enough equipment to constantly maintain 0.0137% of the network, or approximately 19.18TH/s at the current network rate (~140PH/s). This would mean 45 BitMain S3 miners to start, increasing your amount of hardware over time to compensate for the difficulty increases.

This is just a very brief overview of course, and the caveats in this game are plentiful.

Thank you for the info but the space was in feet not metres. Me bad. I'm old school when it comes to dimensions. The space is paid for and electricity is 10.05¢ per kWh + a $20 per month service fee.

This give me a framework to build around. Time to cash in my RRSP because the fucking government and banks will just take it anyway!

[Kprawn]

Most of the cost come from the stuff you least expected.

Air conditioning damage and repairs and the cost of the mining racks. So factor in these type of things, when you do your calculations.

The hidden cost creep in slowly, and if you have no liquidity, you might run into problems, keeping your farm running.

[Dabs]

Well, if in Canada, maybe your mine can be like Volkswagen... I mean, air-cooled. Runs better in winter, for example. Depends on which province you are in.

I mean, if you happen to be in Nunuvut or Northwest Territories, then heat will be less of a factor (and noise is probably irrelevant.)

[Bitsaurus]

I have a 14 x 20 space and I'm thinking of setting up a btc mining farm. What kind of rigs and systems do I need to pull this off. At current btc prices I would like to haul in a net profit of 50 k per year. This would be under a legit business as I could write off costs.

In Canada if that matters.

Thanks

280m² is a fairly substantial amount of space (at least I'm presuming it's in meters since you mentioned you're in Canada). Since you seem to have that covered, your next objectives are to secure power and cooling / ventilation.

What is your average cost per kWh?
What is the cost to own the space (either rent or mortgage)?

A net income of $50k per year would mean roughly BTC80-90 at current prices. Let's assume your ongoing operational expenses (energy, cooling equipment, rent, internet, miscellaneous maintenance) amount to the same amount...meaning in 12 months you've generated BTC180 (BTC90 for expenses, BTC90 net profit...all assuming a stable BTC/USD or CAD price).

For an entire year, the Bitcoin network of miners will generate roughly BTC1,314,900 until the next block reduction in ~2016. To generate a revenue of BTC180 over the course of 12 months, you will need enough equipment to constantly maintain 0.0137% of the network, or approximately 19.18TH/s at the current network rate (~140PH/s). This would mean 45 BitMain S3 miners to start, increasing your amount of hardware over time to compensate for the difficulty increases.

This is just a very brief overview of course, and the caveats in this game are plentiful.

Thank you for the info but the space was in feet not metres. Me bad. I'm old school when it comes to dimensions. The space is paid for and electricity is 10.05¢ per kWh + a $20 per month service fee.

This give me a framework to build around. Time to cash in my RRSP because the fucking government and banks will just take it anyway!

Your electricity cannot be $10.05 per KWH - that would be the highest rate on Earth.  Please clarify - did you perhaps mean $0.10 as in 10 cents per killowatt hour?  Even that is on the higher side now as many miners have most to areas with $0.02/KWH.

[coinits]

Actually I did say 10.5 cents. DOH!

[SMB-2525]

At 10.5 cents/KWHR, you are gambling on the rate of difficulty increases to go down or the value of BTC to go up to invest in current generation mining hardware.  Note the recent rate of difficulty increases has been substantially lower than the 16% average for 2014. If you have not built a spreadsheet, PM me and I'll send you mine.

I have a tiny mining operation going with "free" electricity. I would not if I had to pay for electricity.

[Bitsaurus]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

[coinits]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

[Bitsaurus]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

Then I'm assuming you're using electrical heaters.  You should send all the excess heat into your living space or spend money with the diversion.

If you were using gas for heat it may not be worth it to do this, however, as natural gas is insanely cheap right now in most places.

You would be running a cyclical farm 8 months of the year - may or may not work.

[coinits]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

Then I'm assuming you're using electrical heaters.  You should send all the excess heat into your living space or spend money with the diversion.

If you were using gas for heat it may not be worth it to do this, however, as natural gas is insanely cheap right now in most places.

You would be running a cyclical farm 8 months of the year - may or may not work.

Yes electric here and gas is expensive because our government meddles and retrofitting is too damn expensive.

[philipma1957]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

Then I'm assuming you're using electrical heaters.  You should send all the excess heat into your living space or spend money with the diversion.

If you were using gas for heat it may not be worth it to do this, however, as natural gas is insanely cheap right now in most places.

You would be running a cyclical farm 8 months of the year - may or may not work.

Yes electric here and gas is expensive because our government meddles and retrofitting is too damn expensive.

oh so if that is so you are under 8 cents maybe under 7 cents. from sept 30 to  apr 30.

 I would think antminer s-3's could work for you.  The trick  is how to get them in house and pay low  import taxes.  You need a canadian to post here that has ordered

from bitmain.  right now 2 are 1.32btc which is about 770 usd. shipped to your home.

 if you order 2 at a time you may save on import taxes.

 you will also be able to setup a bit slower to see if this will work.

[coinits]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

Then I'm assuming you're using electrical heaters.  You should send all the excess heat into your living space or spend money with the diversion.

If you were using gas for heat it may not be worth it to do this, however, as natural gas is insanely cheap right now in most places.

You would be running a cyclical farm 8 months of the year - may or may not work.

Yes electric here and gas is expensive because our government meddles and retrofitting is too damn expensive.

oh so if that is so you are under 8 cents maybe under 7 cents. from sept 30 to  apr 30.

 I would think antminer s-3's could work for you.  The trick  is how to get them in house and pay low  import taxes.  You need a canadian to post here that has ordered

from bitmain.  right now 2 are 1.32btc which is about 770 usd. shipped to your home.

 if you order 2 at a time you may save on import taxes.

 you will also be able to setup a bit slower to see if this will work.

Having ordered online from many countries the government misses a lot. I find that they miss almost all of the ones I have sent via air/express UPS, Purolator etc.

I am thinking that I will do it in small increments and see how it goes. Slow and steady.

[EvilPanda]

Having ordered online from many countries the government misses a lot. I find that they miss almost all of the ones I have sent via air/express UPS, Purolator etc.

I am thinking that I will do it in small increments and see how it goes. Slow and steady.

Great idea buy a bit, see how it goes and then double. It's better to be safe than sorry.

You asked what systems are needed. It depends on on the location (ambient temp.) and the heat produced by the miners. If the room is in your house you may need to make it soundproof so it doesn't annoy you 24/7.

[Bitsaurus]

Having ordered online from many countries the government misses a lot. I find that they miss almost all of the ones I have sent via air/express UPS, Purolator etc.

I am thinking that I will do it in small increments and see how it goes. Slow and steady.

Great idea buy a bit, see how it goes and then double. It's better to be safe than sorry.

You asked what systems are needed. It depends on on the location (ambient temp.) and the heat produced by the miners. If the room is in your house you may need to make it soundproof so it doesn't annoy you 24/7.

Can't really make miners soundproof unless you enclose them in a room and vent the room.  Where there is airflow there is sound since air transmits the sound.  That's why he was going to run them outside in the first place.  Annoying noise vs free heat in winter... depends on what the wife/GF allows

[grn]

Actually I did say 10.5 cents. DOH!

At 10.5 cents I probably wouldn't consider setting up a farm as you will be making a significantly lower profit margin from the beginning.  Either find a site with lower power rates or find a way to steal electricity 

One thing that I can factor in is that I can use the heat to partially heat my living space. Since we are in cold weather for 7-8 months per year it will help offset the heating bill.

Then I'm assuming you're using electrical heaters.  You should send all the excess heat into your living space or spend money with the diversion.

If you were using gas for heat it may not be worth it to do this, however, as natural gas is insanely cheap right now in most places.

You would be running a cyclical farm 8 months of the year - may or may not work.

Yes electric here and gas is expensive because our government meddles and retrofitting is too damn expensive.

oh so if that is so you are under 8 cents maybe under 7 cents. from sept 30 to  apr 30.

 I would think antminer s-3's could work for you.  The trick  is how to get them in house and pay low  import taxes.  You need a canadian to post here that has ordered

from bitmain.  right now 2 are 1.32btc which is about 770 usd. shipped to your home.

 if you order 2 at a time you may save on import taxes.

 you will also be able to setup a bit slower to see if this will work.

There are no import duties to canada but you will have to pay pst/gst

[seriouscoin]

I cant believe you guys convinced the noob that he can make money mining right now.

LOL Atleast show him how to do a proper calculation.

Hey OP, newsflash for you, you're competing with +80% of the network that only pays <7c/kwHr

[bitcoinbearhk]

I have a 14 x 20 space and I'm thinking of setting up a btc mining farm. What kind of rigs and systems do I need to pull this off. At current btc prices I would like to haul in a net profit of 50 k per year. This would be under a legit business as I could write off costs.

In Canada if that matters.

Thanks

280m² is a fairly substantial amount of space (at least I'm presuming it's in meters since you mentioned you're in Canada). Since you seem to have that covered, your next objectives are to secure power and cooling / ventilation.

What is your average cost per kWh?
What is the cost to own the space (either rent or mortgage)?

A net income of $50k per year would mean roughly BTC80-90 at current prices. Let's assume your ongoing operational expenses (energy, cooling equipment, rent, internet, miscellaneous maintenance) amount to the same amount...meaning in 12 months you've generated BTC180 (BTC90 for expenses, BTC90 net profit...all assuming a stable BTC/USD or CAD price).

For an entire year, the Bitcoin network of miners will generate roughly BTC1,314,900 until the next block reduction in ~2016. To generate a revenue of BTC180 over the course of 12 months, you will need enough equipment to constantly maintain 0.0137% of the network, or approximately 19.18TH/s at the current network rate (~140PH/s). This would mean 45 BitMain S3 miners to start, increasing your amount of hardware over time to compensate for the difficulty increases.

This is just a very brief overview of course, and the caveats in this game are plentiful.

Thank you for the info but the space was in feet not metres. Me bad. I'm old school when it comes to dimensions. The space is paid for and electricity is 10.05¢ per kWh + a $20 per month service fee.

This give me a framework to build around. Time to cash in my RRSP because the fucking government and banks will just take it anyway!

Your electricity cannot be $10.05 per KWH - that would be the highest rate on Earth.  Please clarify - did you perhaps mean $0.10 as in 10 cents per killowatt hour?  Even that is on the higher side now as many miners have most to areas with $0.02/KWH.

$0.02/kWh is indeed SO cheap, where do you get that?  In my opinion $0.10/kWh is not too bad and is quite decent. 

[SMB-2525]

I cant believe you guys convinced the noob that he can make money mining right now.

LOL Atleast show him how to do a proper calculation.

Hey OP, newsflash for you, you're competing with +80% of the network that only pays <7c/kwHr

I sent him my spreadsheet. He has the modeling tool to run various scenarios.