Sphere 3D’s operations are growing at rapid deployment. In 2023, we plan to deploy 1.6 EH/s of one of the top efficient Bitcoin miners prioritizing sustainability-focused hosting facilities.
Bitcoin is a decentralized digital currency that is exchanged on a peer-to-peer global network. Bitcoin Mining is the process that verifies all network transactions using sophisticated hardware, or “Miners”. All transactions are recorded in a publicly distributed ledger called a blockchain.
Multiple peer-to-peer Bitcoin transactions are pooled together to form a “block”.
Sophisticated hardware, or “miners”, compete to verify the block by solving a complex puzzle.
Once a miner has solved the block, all of the Bitcoin transactions in that block are now verified by the network.
The verified block attaches to a chain of already verified blocks called a blockchain.
The successful miner is rewarded with newly issued Bitcoin.
On average, a block is solved every 10 minutes on the Bitcoin network. This presents tremendous opportunity to scale mining operations for exponential returns. Revenue is made up by two streams: block rewards and transaction fees collected for each block.
Variable costs for Bitcoin mining include the electricity required to operate the hardware, and fees paid to hosting providers. Fixed costs include acquisition of mining hardware.
Mining hardware’s energy consumption is measured in joules per terahash (J/Th), and a hashing speed measured in terahashes per second (Th/s).
Miner profitability threshold represents the maximum miner efficiency in J/T to profitably operate. Alternatively, this threshold can be viewed as a miner’s breakeven operating efficiency.
Through strong relationships with premier hosting providers and negotiating power from scale, we can reduce PUE and electricity costs to extend the profitable life of our hardware.