Hey everyone!
I’ve been on the lookout for a subforum focused on "investments in mining" to get the scoop on different opportunities, setups, costs, and all that good stuff. I’m particularly interested in the business and investment side of things.
Got a few questions about the investment framework:
1. Does anyone have experience or case studies on using solar power for BTC mining? Is it really worth factoring in the infrastructure costs? Right now, I’m thinking we could be looking at around 65% nuclear and 35% solar.
2. What’s the typical electricity cost like in other mining-friendly places worldwide?
3. What are the usual management fees for mining operations? Thinking like 15-20%, covering everything from machine purchase to setup, immersion, pools, etc.
Currently, we’re running mining operations in the UAE, enjoying a pretty sweet electricity rate of $0.0299/kWh (and we might find even lower rates in some farms). We’ve got two farms at 9.5MW and 20MW, with plans for bigger ones coming soon. Right now, it’s all nuclear, but we’re also exploring the nuclear plus solar setup since we get about 11 hours of daylight here.
We’re also on the lookout for new investors, with a minimum entry of $500k USD. Got Bitmain Antminers available for immediate purchase. If you’re interested, shoot me an email at hello@estati.ae or hit me up on Telegram @Estatidxb.
Thanks a lot and cheers from Dubai!
I have always thought minning is usually done in the north hemisphere where temperatures are often low so you dont have to spend money on cooling,and as far as i know UAE i susually pretty hot especially during the summer so how does this work exactly ?
See this .
$0.0299/kWh is really good tbh,its almost 4 times cheaper than the average in the us and china which is about 10 cents per kwh, (althought you can probably get a deal with a company for way less but still)
Yeah in the northern hemisphere mining totally makes sense.
For UAE we have cooled shipping containers and immersion cooling. It's hot and sand everywhere, thus this is how we protect machines. And the electricity price we get is really attractive, plus we are now looking into larger mining farms that can be up to 500MW projects.
we have smaller scale solar arrays. we have a 110kwatt a 45kwatt and are trying to set up a 500 kwatt array
So you are in a different country different incentives different rules etc. But you appear to have solid funding and some ability to run mines as of right now. My suggestion is make 5% to 10% solar as a priority. Mostly to show you are willing to be green. It allows you into a second set of investors. The ones that are attracted to green clean mining.
Even as I type out this post the 110+45 = 155 kwatt arrays are only 1/3 of our mining the other 2/3 thirds are done with oil/coal/gas.
But we always push the solar as the green alternative. It has attracted some investment money and if we build the .5 mw array it would bring us to about 55% solar vs 33% solar.
If you stay all nuke some will feel you are not green and or progressive for the worlds power problems.
Their thoughts would be "you got a fucking big ass desert and you don't do solar" just nuclear .
You can counter it by having both options and if the people are 'green' mined you can 'give' them the solar site to use. not the nuclear.
It allows you to pivot either way . And if the solar ends up being a less profitable method you are only in it at 5-10%
If you get more green money expand it to 10-15%
fees are a different matter 15-20% is pretty high.
The initial setup for a mine for a customer can be 15%-20% but the running of the mine once setup need to be in the 5-10% range.
I e you build a 1,000,000 farm for me your cost . charge me 1,200,000 this = certain profit of 200,000 upfront
then you run it. it earns 10 coins profit your fee to run it = 1 coin
the profit is a coin
so this is a profit on running it , but price is less certain since coins go up and down
This is a little off-topic, but I find it interesting how nuclear is put into the same bucket as oil and coal, as non-renewable energy source, while it emits very little CO2.
It bears some risk, of course, but it's much better than burning tons of stuff. Its carbon footprint is relatively close to renewables, as I found on this page for example:
https://timeforchange.org/co2-emission-of-electricity-from-nuclear-power-stations/
You're right on this one
When people hear the word "nuclear" first thing that comes to mind is "chernobyl".This is partially the goverments fault for not providing sufficient educational material about nuclear energy to the mass public instead they just freak out and evacuate millions of people when a disaster happens.
It's probably not, I know many people in UAE, none of them is hardly named Donny , jokes aside, with all honesty, I believe this is nothing but a scam attempt, I can't tell you how I arrived at this conclusion (for security purposes but being in this mess long enough, I have good reasons to believe that this guy is not legit at all).
With that said, if you are interested in "investing" with him, please don't unless you are in Dubai and have seen the facilities and gears, that will at least reduce your chances of getting scammed.
Hello Donny (and community),
I read your very interesting post, particularly the part about your electricity rate - $0.02pp per kWh. I took a look at the tarrifs levied by DEWA (https://www.dewa.gov.ae/en/consumer/billing/slab-tariff) which has the upper industrial rate per kWH, ie over 10001 kWh per month, set at 38 fils (10.3 us cents) and their policy seems to suggest that the more electricity you use, the more you get charged. I quote:
"The current tariff intended to promote efficient consumption of electricity and water at a time it is increasingly needed, equally in the conservation and preservation of our precious resources. To know more on our conservation programs, initiatives and related conservation tips, please visit our conservation tips"
I know that the Barakah nuclear plant has one of it's 4 reactors on line, but it's connected to the grid so I doubt that 'your' electricity comes from that source alone.
Can you provide some clarity?
Hello!
Looks very interesting, will reach out shortly!
We are normally looking at Beeminer Hive setup but are always open for new products. We even thought about the custom cooling setup for 40ft containers.
Depending on the investment size by some investors, we are also looking at warehouse construction instead of containers since they need custom infrastructure. Thanks!
Yes, the pricing you find on DEWA website is correct. However, "special entities" always secure a better electricity price depending on the license, etc. Would be happy to explain in more detail if interested, but this is more confidential information.