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The Importance of Electricity Costs
Electricity costs are one of the most critical factors in determining the profitability of Bitcoin mining operations. For every Bitcoin mined, a significant portion of the rewards is used to cover the electricity needed to power the mining equipment.
At Infinity Hash, this cost is directly deducted from the total rewards before any payouts are made or reinvestments are allocated. Therefore, lowering electricity costs can dramatically improve both the immediate returns to investors and the long-term growth of the mining operation through reinvestment.
Current Situation
To illustrate this point, let’s look at the current numbers for Infinity Hash. 1,000 Infinity Hash shares generate rewards for around $5.7 daily. Presently, Infinity Hash operates with a kWh price of $0.045. With this electricity price and number of shares, the daily electricity costs are approximately $3.6. This leaves a profit margin of $2.1, which is further divided into $1.05 to credit share holders directly, while the other $1.05 goes to the reinvestment wallet.
While this margin is exceptionally good compared to competing mining companies, more than half of the rewards obtained are nevertheless lost to pay the electricity bill. This example helps to show how a reduction in electricity costs would greatly boost net rewards. At the same time, it is obvious that companies operating with even slightly higher electricity costs cannot be competitive. Even if they manage to offer some rewards, they would not be able to withstand a price crash, or a reward reduction event such as the Halving.
The New Gas-Powered Expansion
To achieve better profitability for our investors, Infinity Hash is committed to reducing electricity costs by expanding to locations with ultra-low-cost energy prices. The first of these expansions is already taking place. The new gas-powered location, which is currently being prepared for full operation, will drastically reduce operating costs. By leveraging flare gas—a byproduct that would otherwise be wasted and is harmful to the environment—this site will mine Bitcoin at a cost of just $0.015 per kWh. This is significantly lower than our current average, and once fully operational, we project that it will bring our overall project-wide electricity costs down to an average of $0.019 per kWh.
In addition to the low electricity costs, Infinity Hash is increasing efficiency by deploying M60 miners at this new site. These miners are not only more powerful but also more energy-efficient, which will further improve profitability. With a planned capacity of 100 MW in the first build-out, this expansion represents a massive increase in our mining potential. To put this into perspective, 100 MW could power approximately 30,000 M60 miners, which would multiply our hashrate at least by a factor of 50.
Future Expansions
Looking beyond, Infinity Hash has a clear roadmap to further reduce electricity costs and expand its mining operations. Upcoming expansions into locations like Ethiopia and Scandinavia will utilize renewable energy sources such as hydroelectric power, with prices as low as $0.012 per kWh. The expansion into Sweden will also incorporate heat recovery technologies, turning waste heat from mining into energy that can be used to power local industries and homes. This sustainable approach not only reduces operational costs but also enhances the project’s environmental credentials.
By the end of 2024, we aim to bring our average electricity cost down to at least $0.035 per kWh. By 2025, with the additional expansions fully operational, we expect this figure to drop further to $0.019 per kWh. However these figures are only projections, as they will vary according to investment volumes. Higher investment than expected would result in faster electricity price drops. This continuous reduction in energy costs will significantly boost profitability, increase share prices, and provide higher returns for Infinity Hash share holders.
