Large mining processing

Bitcoin Questions and AnswersCategory: QuestionsLarge mining processing

ken wilson asked 1 week ago

I would like to mine at least the value of one bitcoin per day. What equipment will I need if price is not an issue? Please include all equipment needed. Thanks

1 Answers
Steven Hay answered 1 week ago

Hi Ken,
I’ve done some napkin math here. It’s very rough and subject to change and I can’t guarantee its accuracy. It should give you a rough idea however.
You’d want ASIC mining hardware for sure. The most commonly available ASIC miner at the moment is Bitmain’s S9.
You’d want to locate your facility in a region with cheap power (certain parts of Washington State sell electricity for around 2.5c (US) per kWh). I have no idea what the property cost would be, but a fairly large industrial facility would be required. Something with a high roof and good ventilation.
So, if you bought a facility in a low power-cost region with those kind of power costs, you’d need a hashrate of about 2,000,000 GH/s (2000 Terahash/s) to mine 1 BTC daily, excluding power costs. Note that this was calculated using Bitcoin’s current difficulty rate, a number which has historically risen dramatically with almost every two week retargeting.
So, each S9 produces 14,000 GH/s (14 Terahash/s) and if, you buy them in bulk, an S9 with Power Supply included currently sells for about $700. You’d therefore need to buy about 1428 S9s which would cost $1m.
Note that this produce 1 BTC per day but you’ll still need to pay about $1,357.17 per day in power costs, about 20% of your profit would go to power. So you’ll need another few hundred S9s to offset that to reach your 1 BTC daily target less power costs…
Very roughly, I’d guess you’re looking at about $1.5m minimum for your setup. I haven’t included cooling costs (minimum 5%) and staff costs and so on, at this time.
Buying more efficient hardware like the Dragonmint or GMO miners will bring down your power costs, but they have a higher upfront price tag.
If you want to have a go at the sums yourself, this is the calculator I used:

Bitcoin Video Crash Course 

Join over 94,000 students and know all you need to know about Bitcoin. One email a day for 7 days, short and educational, guaranteed.

We hate spam as much as you do. You can unsubscribe with one click.