Contents
Introduction to Infinity Hash
Infinity Hash is a pioneering project in the Bitcoin mining sector, adopting a community-driven model that prioritizes accessibility, transparency, and sustainability. Through its groundbreaking share system, Infinity Hash offers a unique Bitcoin mining investment opportunity that eliminates the need for substantial capital investments and technical expertise.
Infinity Hash’s model is built on two core components: the share system and reward reinvestment. The share system allows individuals to purchase Infinity Hash shares, earning daily Bitcoin mining rewards from the entire mining infrastructure of the project. These shares are also tokenized, making them fully transferable and tradable. This feature enables investors to cash out at any time, allowing them to realize profits quickly and efficiently.
As for the reinvestment, Infinity Hash dedicates half of the rewards obtained by the mining operation to buying additional mining machines and infrastructure. These funds are also used to pay for repairs and the replacement of machines. This maintains the project in the long run, increasing the hashrate per share over time and potentially increasing returns.
One Year of Outstanding Performance
Infinity Hash was founded in June 2023, and in just over a year, it has experienced tremendous growth. Since August 2023, the total hashrate of the project has increased more than tenfold. Meanwhile and thanks to the reinvest strategy, the hashrate per share has increased from 50 GH/s per share, to 125 GH/s per share. In other words, the hashrate backing every Infinity Hash share has almost tripled over the last year.
On the back of these increases, Infinity Hash share holders have also reaped significant benefits. The platform’s reinvestment strategy and efficient mining operations have driven impressive annual percentage rates (APR), significantly outpacing traditional mining investments. The current full APR for mining rewards only is around 32%.
Additionally, Bitcoin price increases combined with the rising hashrate per share have taken the share price from $0.8 this time last year to $2.2 now. The combined effect of the rising APR combined with the share appreciation would have brought a profit of more than 200% over the last year. That is, an investment of $1,000 in August last year would be worth today close to $4,000.
Comparison with Publicly Listed Mining Companies
While Infinity Hash’s model is very profitable, it is also important to establish a comparison with other Bitcoin mining investments. These days, investors who want exposure to Bitcoin mining have essentially three alternatives: Mining company equity, cloud mining and colocation mining.
Investing in mining company equity does not provide daily payouts but it might still be profitable if the company is successful. However, traditional mining giants have struggled to stay profitable after the halving due to high operational costs. Marathon Digital, for instance, recently reported increased losses in Q2 this year, which led to an 8% fall in their stock.
Infinity Hash, on the other hand, leverages low electricity costs, averaging $0.045/kWh, and a strategic reinvestment model to provide higher and more durable returns. Moreover, the use of only the most efficient machines, ensures large profit margins. The result is a price per Terahash that is less than one third that of the average of large mining companies and significantly lower than any competitor.
However, although the price per Terahash is already much lower, this figure is likely to become even better as time goes by. Infinity Hash’s planned expansions will bring down electricity costs, while the reinvestment model will continue to increase the hashrate backing every Infinity Hash share. With this, the price per Terahash could continue to plummet, increasing the competitiveness of Infinity Hash.
Competitive Landscape: Infinity Hash vs. B2C Mining Firms
Infinity Hash’s model is also different from that of B2C competitors such as Minto Finance and GoMining. As these companies do not employ any sort of reinvestment strategy, they are forced to finance the repairs and replacement of machines by emitting additional shares. The effect is that with every new token created, the investment value of the existing tokens deteriorates, as the hashrate backing them is constantly being diluted. This applies to both Minto’s token-based system and GoMining’s NFT model.
Infinity Hash’s model is designed to maintain or even increase the hashrate backing every share by using the rewards generated by the miners to replace old machines. Since this does not require the emission of new shares, no dilution takes place, and returns can be expected to increase with time provided all other variables remain constant.
Moreover, these sites require some technical competence to invest. This is true in particular of GoMining’s NFT model, which requires investors to select one of many possible NFTs, unnecessarily complicating what should be a straightforward procedure. By contrast, Infinity Hash has put effort into making the buying and selling of shares as easy and flexible as possible. Investors that want to operate on the blockchain can do so through a DEX, and those that don’t can simply buy through their website without having to even install a wallet. Within 24 hours, they will begin earning daily rewards, without any other action required of them. Moreover, Infinity Hash share holders don’t need to lock their funds in a smart contract, being able to withdraw or sell the shares whenever they choose.
Sustainability and Future-Oriented Strategies
Cheap electricity is perhaps the most important factor to achieve high profitability in Bitcoin mining. Over the next few years, Infinity Hash is going to be expanding to several new locations, with the goal to reduce electricity costs while diversifying risks. New locations in Ethiopia, Asia, and Scandinavia will utilize cheap and renewable energy, such as flare gas and hydropower. Some of these expansions are already prepared and will commence operations within 2024.
With these new sites, Infinity Hash aims to reduce its average electricity cost to $0.035 per kWh by the end of 2024 and further down to $0.02 per kWh by the end of 2025. This reduction in energy costs will result in higher mining profitability and will positively affect share prices. By harnessing innovative energy solutions, Infinity Hash is poised to lead the Bitcoin mining industry in sustainability and profitability.
Institutional Readiness and Expansion Capabilities
Thanks to the multiple future and ongoing expansion plans, Infinity Hash is fully ready to accommodate substantial institutional investments. Given the current supply chains and infrastructure, Infinity Hash can absorb up to $600 million in new investments each month.
This scalability is supported by several key features:
- xIHS for Secure Cold Storage: The xIHS token offers a secure and efficient way to store value, ideal for institutional investors who want to self-custody their investment.
- FIAT Payment Options: Infinity Hash supports various FIAT payment methods, including bank transfers, making it easier for institutional investors to engage with the platform.
- OTC Investments: OTC deals make it possible to acquire large amounts of Infinity Hash shares without losing value to price slippage.
Conclusion
Infinity Hash represents a notable advancement in the cryptocurrency mining sector by merging the stability of traditional mining with the flexibility and innovation of tokenization. This approach, combined with its community-driven model, competitive returns, and commitment to sustainability, distinguishes it from typical mining investments.
The platform’s unique share system enhances investor accessibility and flexibility, while the reinvestment model supports scalability and boosts potential returns.
As Infinity Hash expands and optimizes cost-efficiency, it positions itself as a leader in the future of Bitcoin mining, setting new standards for profitability and transparency. This strategic vision ensures that Infinity Hash continues to offer exceptional value, reshaping the evolution of the cryptocurrency mining landscape.
