Monday Mining Metrics: ASICs as an Asset Class
Monday Mining Metrics: ASICs as an Asset Class
Bitcoin Mining Update - 7/1/2024
ASICs as an Asset Class
Bitcoin mining requires significant capital investments in infrastructure and ASICs. Traditionally, these mining rigs have been viewed as a sunk cost, with returns dependent on mining profits eventually surpassing the initial upfront cost.
The Blockware Marketplace causes a paradigm shift. Miners can now view ASICs not as sunk costs, but as dividend-paying assets. The dividends are the Bitcoins mined, and the assets are the ASICs themselves, which have a spot value influenced by Bitcoin's price and hash rate.
The price of ASICs have historically moved in near lock-step with the price of Bitcoin. According to previous Blockware research, S19’s had a 96% correlation with the price of Bitcoin from 2020 to 2022.
One of the foremost challenges for Bitcoin miners is liquidating their machines and realizing the increased spot value.
This real-life case study from one of Blockware’s hosted mining clients demonstrates how the ability to sell ASICs, and realize appreciation on the hardware, greatly improves the mining thesis; allowing miners to earn higher returns, faster.
A client purchased 76 S19 K Pro ASICs for ~$123,000 and paid ~$37,000 in electricity costs throughout a four month period from January to Mid-April.
Had this client simply mined Bitcoin without liquidating their ASICs, they would have recouped 62% of their capital during this period. However, by selling the rigs at a higher price after mining with them for a few months, they returned 156% of their capital.
This level of optionality is made possible by the existence of a liquid secondary marketplace. Blockware is the only hosting provider in the ecosystem that offers this.
This week’s mining update was inspired by Blockware CRO Danny Condon’s keynote speech from Mining Disrupt 2024. Click here to watch Danny’s speech.
Antminer S21 Pro
The Antminer S21 Pro was recently revealed by Bitmain, clocking in at a whopping 234 TH/s and 15 W/Th. Blockware is now accepting pre-orders for this machine which is expected to come online the first week of August.
Click here to get in contact with us and learn more!
Blockware Direct ASIC Pricing with Hosting
For those seeking to purchase ASICs in bulk (with or without hosting), contact sales@blockwaresolutions.com or reach out here.
We can help you secure all of the top ASICs currently on the market.
All machines are new and payment includes tariffs, duties, and shipping.
Contact sales@blockwaresolutions.com or reach out here.
All content is for informational purposes only. This Blockware Intelligence Newsletter is of general nature and does consider or address any individual circumstances and is not investment advice, nor should it be construed in any way as tax, accounting, legal, business, financial or regulatory advice. You should seek independent legal and financial advice, including advice as to tax consequences, before making any investment decision.