While I understand your perspective, it’s important to clarify some misconceptions about the current state of private Bitcoin mining compared to publicly traded mining companies. Most people are unaware of the key differences, so no fault to you, but the reality is quite distinct. You’d be surprised how many “crypto guys” don’t know a thing about mining.
Publicly traded mining companies (Pubcos) often struggle with profitability due to high overhead costs and expensive debt capital. Many are only now starting to break even on their cost to mine Bitcoin (illustrated in the example I shared). In contrast, Blockware is a private white glove mining as a service company, which we started in 2017, and our clients benefit from significantly lower costs than Pubco miners.
Currently, Blockware clients can produce Bitcoin at a cost of approximately $44,402.85 based on the current spot price of BTC (using the S21XP model) with an electricity hosting rate of $0.078/kWh. And yes, at the current spot price of bitcoin the net annualized yield on mining these rigs is 33.03% with the potential of an intrinsic value due to bitcoin increasing and your opex staying stagnant. I’d be happy to provide more details and share additional numbers to illustrate this further.
For context, I spent four years working on Wall Street, managed a fund with around $35 million in assets, and have been deeply involved in Bitcoin mining for quite some time—now as part of the Blockware team my aim is to bridge the gap and help shed light on creative strategies to increase there bitcoin holding without making the mistake to go with the binary option of just buying spot bitcoin. I put my contact in the original thread, happy to connect and discuss further just shot me an email.
