Hashrate Asset Group (HAG), a leading player in the Bitcoin mining industry, is introducing an innovative approach that provides both retail and institutional investors access to Bitcoin mining in a transparent and sustainable manner. HAG aims to revolutionize the industry by offering a compliant and affordable pathway for investors to participate in Bitcoin mining.
In recent news, one of the world's largest investment companies, signaled its entry into the Bitcoin mining sector, highlighting the growing interest in this space.
HAG's innovative model opens up the world of Bitcoin mining to a broader audience. It allows both Web2 and Web3 investors to participate in this dynamic sector while maintaining transparency and compliance. Here, we provide essential information for investors looking to explore Bitcoin mining.
Understanding Key Bitcoin Mining Terms
Before delving into investment considerations, it's crucial to understand essential Bitcoin mining terms:
● Hashrate: Hashrate represents the computational power of a miner, measuring how many times a miner can perform hash computations in a specific time unit. Hashrate is typically denominated in kilo (k), mega (M), giga (G), tera (T), peta (P), or exa (E) hashes per second.
● Mining Efficiency: Mining efficiency gauges how much energy a miner consumes while performing computations, usually measured in watts (W) or joules (J).
Before we jump to the next term, there is an excellent mining data source from HAG that provides the weekly recap about the Bitcoin mining market as the chart below. The columns are essential points in the mining industry.
Link to HAG Mining Weekly Recap: https://twitter.com/HashrateAsset/status/1696761398980993231?s=20
● Mining Difficulty: Mining difficulty quantifies the complexity of solving cryptographic puzzles to generate new blocks in the blockchain. The initial mining difficulty is 1 which requires 2^32 times of hash computation to generate a new block. With mining difficulty rising, the theoretical times of hash computation to generate a new block should be D*2^32. It is expressed in units of hash and adjusts approximately every 2016 blocks. Higher difficulty values indicate greater complexity.
● Weekly Average Hashrate: This metric provides an overview of the total hash power within the entire Bitcoin network, reflecting the competitive nature of Bitcoin mining.
● Weekly Average Mining Reward: This figure represents the amount of Bitcoin generated based on the total hashrate and mining difficulty.
Investors often consider two main factors when evaluating Bitcoin mining profitability: revenue/yield and cost.
Revenue/Yield: Yield can be measured in either dollars or Bitcoin. For most miners, Bitcoin-based yield is the primary focus. The formula to calculate yield is:
P = H * (1 / (D * 2^32)) * R * (24 * 60 * 60)
● H: Your hashrate/hashpower.
● D: The current mining difficulty (measured in hash units).
● R: The Bitcoin reward for adding a new block (currently 6.25 Bitcoin per block).
This calculation provides your yield on a Bitcoin basis, which can be converted to a dollar basis based on Bitcoin's price.
Cost: The primary cost associated with Bitcoin mining is electricity cost. Depending on your situation, you may face management electricity costs, pure electricity costs, or electricity costs combined with management fees. Calculating the daily electricity cost involves multiplying the machine's power consumption (in watts) by the electricity cost per kilowatt-hour (kWh).
Closing Price/Break-Even Price: The closing price represents the threshold at which mining becomes unprofitable. It is calculated as follows:
Price = Cost per machine / Yield per machine
These calculations provide a quantitative basis for investment decisions and can be adapted to different scenarios and assumptions. Remember that the closing price varies based on mining equipment, electricity cost, and other assumptions affecting yield.
This information serves as a valuable resource for those considering Bitcoin mining investment. HAG, the world's first security token focusing on Bitcoin mining, offers investors the opportunity to earn monthly WBTC distributions. With a commitment to compliance, transparency, and sustainability, HAG invites potential investors to explore their offerings on the INX platform and join their community to discuss your insights into Bitcoin mining or to learn more about Bitcoin mining within the industry.
Caluculating break-even price
One important threshold for a miner to decide whether to stop mining is the closing price, aka break-even price. This price will vary across different series of mining equipment, electricity cost, and different assumptions that affect yield. Basically, the closing price could be deducted from the formula below:
Price = Cost per machine/ yield per machine
Cost per machine is on a Dollar basis, and yield per machine is on a Bitcoin basis.
About Hashrate Asset Group
Hashrate Asset Group is dedicated to creating the world's first sustainable, compliant, and transparent Bitcoin standard arithmetic operating model. HAG Token allows investors to participate in the ecosystem and receive real-time returns on their investments. HAG's mining farm is located in the United States, and its team comprises industry-leading professionals with experience from Bitmain, Goldman Sachs, and TSMC.
Company: Hashrate Asset Group
Contact Person: Alpaga YANG
Email: [email protected]
Telephone: +65 80388730
This announcement is for informational purposes only and should not be considered investment advice. Any projections or opinions expressed in this release are subject to change and should not be relied upon for making investment decisions. Cryptocurrency investments carry a high degree of risk, and the mentioned asset is not regulated by any government or regulatory authority. It is crucial to conduct thorough research and consult with a financial advisor before making any investment decisions.