Crypto Currency Mining Operations

Our initial mining operation is complete. The design was completed in May 2021 and the final pieces of the operation came online in the colocation data center on October 5, 2021. It was a journey.

One of the key goals of the design was to diversify in coins/algorithms to mine. We chose the following: Bitcoin (BTC), Dogecoin (DOGE), Litecoin (LTC) and Nervos (CKB). Now you may be wondering, why those? It basically came down to efficiency due to power and ROI. Notably, Ethereum is missing from the mix. With all of the upcoming discussion on moving from POW (proof of work) to POS (proof of stake) It just wasn't worth taking the additional risk on. There was enough risk in what was ahead for us.

The operation invested in three types of miners Antminer S19J Pro for bitcoin, Goldshell CK5 for Nervos and Goldshell LT5 Pro for Litecoin and Dogecoin. Investing in the miners initially was a no-brainer. With Bitcoin hovering around $60k at the time the plan was put in place. However, shortly thereafter China mandated miners of the crpto business and everything dropped sharply to a low of $31k in July 2021. Yikes! It seemed that we were going to need to postpone things but investment in equipment had already started. We were committed.

Acquiring the equipment was not trivial. To start with, there are multiple fake websites selling miners. They are very well done so caveat emptor! Manufactures only want to talk to you if you are buying hundreds or thousands of units and to buy small quantities there are many resellers with exorbitant fees added. Almost all of the miners are made in China so that is where we went. Using a reputable distributor for purchases was a key success for us. Shipping was a big risk. Probably as big as buying the equipment. Import duties and lost shipments had to be dealt with. One shipment with two miners was lost for weeks by the shipping company. We were going to lose a significant capital investment when unexpectedly the miners showed up.

This week there is a crypto-currency rise in the value of coins. We will likely see a 10% return on investment this month. What will happen next month? As a friend of mine said,

"Get your favorite dart board and write numbers $5k to $100k any combo you want and throw a dart. This is your estimate on the price of BTC in a year."

Couldn't have said it better. One thing is sure, with a capitalization of $1.0T today in Bitcoin alone, crypto currency is here to stay.

I'm interested to hear from you and your experiences. Leave a message with your thoughts and experiences below.

#bitcoin #cryptocurrency #cryptomining