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`r/Bitcoin • 7 yr. ago
`by APrice44
`Mining with free natural gas
`Hello all,
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`I am looking for some advice. I have followed bitcoin for awhile but, never been a miner. With news of the bitcoin
`reward halving upcoming in about 1000 blocks, I am considering starting. I have come into a unique situation. A
`property that we have recently purchased has natural gas. This specific property was owned by a wealthy guy
`before we purchased it and he was responsible for bringing natural gas to our rural area in the early 1900's. When
`he worked the land grant deal with the gas company, they awarded him a pennies on the dollar gas contract for
`the life of the property as long as his family members are alive. So this basically translates to natural gas that cost
`next to nothing....
`
`With that being said, I am thinking of getting a 40KW natural gas generator and as many ant miner S7 units that I
`can afford. Yes, I have seen the 16nm S9 units but they are really expensive. I am thinking of starting with S7 units
`and upgrading to S9 at a later date. If I stay with S7 units, I could theoretically run 28 units at a max of 1400 watt
`each. This calculates out to be 39,200 watt which would be provided by my natural gas generator.
`
`What do you guys say about this? Would it work or why wouldn't it work? Would it be profitable? I am new to all
`of this. Just trying to find a way to take advantage of this free power source.
`
`Yes this is real and I am serious. It may sound dumb or stupid to you advanced users. I am just looking for help.
`
`Thanks in advance
`
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`Erumara • 7 yr. ago
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`6 comments
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`1
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`CRUSOE-1016
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`

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`You do indeed have a rather unique situation, I'm a little jealous. While I could not speak to the expense or
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`expected return on investment on such a power source, you've left out a great deal of information anyone
`would need to offer sound advice.
`
`You need to get your total investment costs, your energy plant, costs to build the structure to house your
`miners with ventilation and power supply included, and your cost to buy miners and psu's.
`It will come down to what you can really produce in cost/kWh on the kind of term you want to see your
`power plant paid off, probably 10yrs, always include maintenance costs/year for upkeep on your power
`source.
`Not feeding excess power back to the grid would be a waste, as a result you will need to be grid-tied
`and in truth you are displacing grid supplied power to your miners with your own.
`If you're in an area with cheap power anyways, you may not see a reasonable return on your power
`plant, which means it may make more sense to build a mine, and build a power plant afterwards as an
`investment.
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`justpaulplease • 7 yr. ago
`Don't forget to account for air con power requirements in your calculations.
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`fuckaluckaduckduck • 7 yr. ago
`I agree with your decision to buy S7's instead of the new S9's, as the price to Th/s seems to be in favor of S7's.
`440 usd for 4.73 Th/s vs 1800 usd for 11.85 Th/s (Bitmain.com July 3rd). The math is good there, and with 28
`of them, you'd be running a system worth 132.44 Th/s off your generator, which will cost 12320 usd + 28
`psu's(@150$) = 17000 usd. Running these things at 40000 Kwh, with a power cost of 0.01, the mining
`calulator I used pumped out some impressive numbers. calculator link says you'd break even day at 185.3
`days, and be making 33k a year, within the set variables (and 12.5 bitcoin/block). It would be useful to know
`any other numbers you could provide, such as a more accurate cost of power, cost of generator, and pretty
`much everything Erumara said in his comment. I would like it if anyone were to correct me on these numbers,
`because mining bitcoin seems outrageously profitable with this low cost of electricity. If I were to run your
`setup with my cost of electricity (0.11 per kw/h), I would never make a profit, ever.
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`crawlingfasta • 7 yr. ago
`You're one of the lucky few who can really make a profit from mining bitcoin.
`
`Make sure to read that gas contract really closely before you invest in a 40KW gas generator and make sure
`that the zoning stuff all works out.
`
`If it's a cold area, try to use some of the miners to heat a house too!
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`APrice44
`
`• 7 yr. ago
`
`2
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`

`

`I will try to address some of your questions.
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`Erumara.... The structure to house the miners is already standing. I am going to renovate part of an unused
`dwelling that is weather safe and temperature controlled.
`
`My expenses will be the cost of the miners. Cost of the natural gas power plant. Cost of the power supply
`for the S7. Cost of electrical wiring for building. Cost of ventilation. I will describe a few of these that I
`know below
`
`All prices current from amazon - U.S. dollar. July 3rd 2016
`
`Antminer S7 - 4.73Th/s - 1300watt power draw $599
`Antminer 1600 watt power supply $182.00
`Generac 45,000 watt natural gas generator $11,339.10
`
`List of known materials
`
`30ea./ S7 miners - $18,000
`
`30ea./ S7 PSU - $5,460
`
`1ea./ 45,000 watt generator - $11,339.10
`
`I am going to guess for the wiring, stands, software, storage and ventilation an additional $5,000. This is just a
`guess and may be high.
`
`taxes and freight an additional $1,500
`
`** TOTAL - $41,299 **
`
`As stated above, some of these are just an estimate. Just to be safe we can figure an initial investment cost of
`$50,000.
`
`I am going to speak with the gas company to inform them of my decision to run one of my "homes" power on
`the natural gas generator to eliminate local utility electric grid cost. As far as my understanding of the contract
`goes, it is a set price and doesn't fluctuate with usage. This contract will expire when the last living descendant
`of the original property owner passes away. This is multi-generational and is passed on to the grand children
`and the children of the grand children as it was explained to me. You guys should see this place.... Gas lamps
`along the driveway, all gas appliances, gas heat, gas pool heat, gas outdoor lighting. It's a pretty unique
`situation.
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