Iris Energy is making some big moves in the mining game according to a recent press release. They just bought 7000 of Bitmain's new T21 ASIC miners, which were just revealed a few days ago and are expected to arrive in Q1 of 2024.
This buy is all about ramping up their mining operations. Their facility in Childress, Texas, is looking to boost its capacity by 80 megawatts with a goal of hitting 10 EH/s by Q2 of 2024. Plus, they’ve got bigger plans in motion, aiming to set up more data centers with a combined capacity of 600 megawatts.
I mean, this deal with Bitmain isn’t just a one-off. Other big names in the industry are also stepping up their game with significant hardware investments. It really indicates that the big players in Bitcoin mining are still feeling good about profits even with the Bitcoin halving coming up next year.
Bitmain Antminer T21 (190Th)
SHA-256 190Th/s±5% 3610W±5% 0.019j/Gh
https://www.asicminervalue.com/miners/bitmain/antminer-t21-190th
The purchase price for ASIC for them is 2657 dollars, and if they buy ASIC for half an hour in February 2024, then this is a good deal.
With such volumes of purchases after halving, Bitmain series 19 ASICs will be unprofitable, and its older series will be useless for mining.
The way I see it, it only shows how easy it is to gamble with money that isn't yours (investors' money), back in the day when the Chinese miners were dominating, you could always sense some rational movements in the hashrate, probably because it was the miner's own money, nowadays where the U.S is the largest mining hub, things just don't make much sense anymore.
All these large corps are betting on the price of BTC to hit the roof after the halving, if it doesn't, many of them will be in deep shit.
T21 burns roughly 87KwH a day, for 6 cents rate that is 5.2$ paid daily, as it stands right now it makes $14.5 so $9.3 a day in profit, so without the halving the ROI on these is 280 days, for the 4 cents miners it's $11 profit a day or 240 days ROI.
If the halving hits and BTC isn't at 80k, then this profit will fall right away, if BTC stays below 40k for long enough, the ROI on these gears could easily extend to over 500 days which more so like never.
Of course, the other bet besides the price is that "others will fall before us", and ya that's a bet you can make if you have <4 cents, maybe 2-3 cents all-in including all operational costs and 0% failure rate, but it seems like all these big boys are betting on each other's failure, the math states that it's not possible for all of them so survive the halving, so who is going to fall first? we will find out when the time comes, Q3 of next year will be fun to watch.
Why do you think that the new Mayers are at a loss?
From the cost of 8-12 thousand dollars per bitcoin on ASICs 17-19 series of Bitmain. After the halving, the cost of Bitcoin mining will increase, but mining companies will also use the new 21 series of ASICs. I think that with this option their costs will increase by 50-70% and the companies will make good profits.
https://bitcointalk.org/index.php?topic=5473513.0
Well you also shouldn't ignore the usual fact with Bitmain and others that you are paying WELL in advance and not hashing anything at all until after you get them ... and nobody knows or can ever guess what the NetDiff or BTC$ price will be that far in the future ...
Oh god! It's not the cost that will increase , it's the revenue per th/s that goes down!
It will cost you the same to run your machine, it's just that your machine will be earning less.
And don't even get me started on the math, because if you earn 100$ for $80 spent, a doubling in cost makes you lose $60, a having in revenue makes you lose $30, and this is just raw example not accounting caring for running and fixed costs, taxes, deductions and so on.
I tried to make something out of their release but no, too much of a headacke:
https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-august-2023
Negative realized electricity costs of ~US$0.08/kWh3
https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-september-2023
1.4c power at Childress since inception3
Company was effectively paid ~$28k per Bitcoin to take power at Childress and generated a further ~$28k per Bitcoin in mining revenue (i.e. ~$56k mining profit4 per Bitcoin at Childress)4
Like yeah, free cookies for anyone who will not bang his head agaisnt the wall after reading this
But , they do seem to have enough money for
Pretty easy to mine and be generous, when it's raining free money!
I agree with you that due to the large increase in hashrate, profit will decrease every week.
And many more companies have not started supplying new ASICs.
https://minerstat.com/coin/BTC/network-hashrate?
But it is probably easier for the average observer to observe the mining costs of large companies, which they publish in quarterly reports.
the company today published a monthly investor update for december
a total of 399 BTCitcoin were mined in the last month of the year, which makes 4123BTC in the entire year 2023
in addition, the expansion to 10 eh/s was fully funded, the commissioning of NVIDIA h100 gpus for generative ai is underway and the average operating hashrate amounted to 5576 ph/s
further information can be found in the following link: https://irisenergy.gcs-web.com/news-releases/news-release-details/iris-energy-announces-monthly-investor-update-december-2023