BTCMiner's secret weapon! Use 2 tricks to earn the most BTC and achieve 145% profit

Bitcoin has reshaped the landscape of digital assets, consistently outperforming traditional markets year after year. However, how can investors and institutions maximize their BTC holdings beyond simple 'buy and hold' strategies?

BTC has outperformed all major asset classes over the past decade, consolidating its position as the Benchmark for digital asset investors. For those who firmly support the long-term vision of BTC, the ultimate financial goal often shifts from accumulating more dollars to maximizing the amount of BTC held.

BTC is the Hurdle Rate

Bitcoin is to digital assets what government bonds are to the TradFi system - it is a fundamental benchmark.

Although any investment carries risks, holding BTC in self-custody eliminates counterparty risk, dilution risk, and other systemic risks commonly found in TradFi.

Over the past 12 years, BTC has outperformed all other asset classes in 9 years (often by orders of magnitude). Therefore, for many investors, especially those who understand the history of currency, BTC has replaced national debt as their 'risk-free return'. This view is mainly due to the unique appeal brought by BTC's verifiable scarcity.

Image source: Bitcoinmagazine

In other words, the financial goal of digital asset investors is no longer to earn more dollars, but to acquire more BTC. In their view, all investment or consumption activities need to be evaluated in terms of BTC opportunity cost.

MicroStrategy has demonstrated the practical application of the "BTC Yield" (BTCYield) indicator in the business world.

According to its 8-K filing on September 20, MicroStrategy stated, "The company will use BTC yield as a key performance indicator (KPI) to evaluate its strategic performance in acquiring BTC in ways deemed advantageous to shareholders."

MicroStrategy fully leverages the tools advantage of being a listed company with a market capitalization of billions of dollars: they can obtain low-interest debt financing and issuance new shares. Through this KPI, the company proves that even with the dilutive nature of traditional new stock issuance activities, the amount of BTC obtained per share is still increasing.

Goal achieved: they did indeed acquire more Bitcoin.

Image source: Blockware

However, MicroStrategy's advantage is beyond the reach of ordinary fund management companies or retail investors:

As a publicly listed company, they are able to raise funds from the capital market at very low or even zero cost.

Regular investors cannot raise funds through issuance of stocks, nor can they borrow US dollars at near-zero interest rates using issuance convertible notes to purchase BTC.

So here's the question: How can ordinary investors accumulate more BTC? How can they achieve a positive BTC yield?

BTCMining

BTCMiner obtains BTC by contributing Computing Power to the BTC network, and its revenue is the total value of BTC obtained by Mining exceeds the electricity cost required for its operation equipment. Of course, this is much more complicated than it sounds.

BTC protocol maintains the established supply plan through the 'Difficulty Retargeting' mechanism, which means that when more Computing Power is invested in BTC Mining, the limited Block Reward will be divided into smaller market shares.

Image source: Blockware

The most effective BTCMiners are those who can maximize computing power and minimize operating costs. This requires: purchasing the latest, most advanced BTCMining equipment; operating at the lowest possible electricity cost.

Image source: Blockware

Under the current market conditions (as of November 21, 2024):

The price of Bitcoin is about 98,000 US dollars per coin;

Using Antminer S21 Pro Mining, with electricity cost of 0.078 USD/kWh, the electricity cost of mining 1 BTC is approximately 40,000 USD.

This means that the operating profit margin is close to 145%.

By comparison, a profit margin of 5-10% is generally considered a 'healthy profit margin' for businesses. BTCMining clearly surpasses this standard. Even after the BTCHalving in April 2024, Mining will still be able to maintain high profits per unit of Computing Power obtained from BTCHalving.

Price growth is faster than difficulty growth

The price of financial assets (especially BTC) is determined in margin trading. This means that the price is determined by the most recent transaction between buyers and sellers, reflecting the price that the last buyer is willing to pay and the price that the last seller is willing to accept.

This mechanism is partly responsible for the high volatility of BTC prices. When there are no sellers at price X, buyers must bid higher than X to find the next seller willing to sell; conversely, when there are no buyers at price X, sellers must drop their asking price to find buyers willing to buy. Therefore, the price of BTC can quickly rise or fall within a specific range due to insufficient numbers of buyers and sellers.

In contrast, the Fluctuation speed of BTC prices is much higher than the growth rate of network Mining Difficulty. The significant growth of Mining Difficulty is not driven by marginal Bid-Ask Spread, but relies on the cumulative results of ASIC Mining Rig manufacturing, energy production, and Mining infrastructure construction. Increasing the total computing power of the BTC network cannot bypass the time and manpower investment required for these.

This dynamic has created a lot of opportunities for BTCMiner to accumulate BTC.

Image source: Blockware

This chart shows the explosive growth of Mining profits during the BTC Bull Market. 'Hashprice' evaluates the income per unit of Computing Power for BTC Miners each day. At the peak of each BTC Mining cycle, the hashprice has grown by over 300% YoY, which means that the profit margin of Miners has increased by more than three times in 12 months.

In the long term, as more institutions join BTCMining, Miners upgrade to more powerful and efficient machines, and the Block Reward Halving occurs every four years, this indicator is trending downward. However, during the Bull Market, the force driving the increase in Mining Difficulty (thereby negatively impacting Mining profitability) seems insignificant compared to the rapid growth of BTC price.

The price Fluctuation of BTC Mining Rig hardware equipment

In addition to the substantial increase in profitability during the bull run, BTC miners also benefit from the characteristic that ASIC Mining Rig prices usually fluctuate in sync with BTC prices. In the BTC cycle from 2020 to 2024, the price of the most advanced Mining Rig, Antminer S19, initially started at around $24/T. By November 2021 (when BTC prices peaked), this price had exceeded $120/T.

Image source: Blockware

With the launch of each new Mining Rig generation, the ability of BTCMining Rig to retain resale value is gradually increasing. In the early stages of BTCMining, technological advancements were rapid and strong - the new generation of ASIC Mining Rigs could instantly obsolete the old models. However, the performance gains of new ASIC Mining Rigs have gradually diminished, and old models can remain competitive for several years after release.

Taking the S19 Mining Rig launched in 2020 as an example, it still holds certain market value to this day. Based on this, it can be reasonably speculated that the S21 series Mining Rig will have even longer-lasting value retention. This characteristic provides significant advantages for Miners to accumulate BTC, as the upfront cost of purchasing a Mining Rig is no longer a sunk cost. The Mining Rig itself has a market price, which is linked to BTC, and Miners can achieve liquidity through relevant resources.

Image source: Blockware

Blockware Marketplace platform

Blockware has developed this platform to allow institutions and individual investors to directly participate in BTCMining. Through this platform, users can purchase BTCMining Rigs that are already deployed in Blockware's Tier 1 data centers and enjoy industrial electricity prices. These Mining Rigs are already online, avoiding the long delivery times that previously caused Miners to miss crucial market cycles.

In addition, the platform is designed by BTC enthusiasts for BTC enthusiasts. Mining Rig is purchased using BTC as the Medium of Exchange, and mining rewards are not held by Blockware, but are directly sent to the user's own Wallet.

More importantly, this platform provides miners with the choice (rather than obligation) to sell their mining rigs at any price. This allows miners to profit from the fluctuation in ASIC mining rig prices, recover the costs of their mining rigs, and accumulate BTC faster than traditional 'single mining' models.

This innovation eliminates the obstacles that existed in the past hosting Mining, allowing Miners to focus on the core goal: accumulating more BTC.

Disclaimer: This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances and comply with relevant laws and regulations in their country or region.

This article is reproduced with permission from: MarsBit

Original author: Blockware

This article, originally published in 'encryption city', reveals the secret weapons of BTCMiner! Use 2 tricks to earn the most BTC and achieve 145% profit.