this particular documentary is provided by Motherboard and it covers one (of 6) location within a re purposed factory in the Liaoning Province in rural northeast China.
Based on the video:
- Qty 3000 hardware mining devices in use
- Qty 900 dead mining hardware devices
- Mining is generating 25 Bitcoins per day ($5700 USD).
- Electricity costs $2700 USD per day ($80,000 per month).
Let's do some additional calculations....With back of the napkin accuracy
Initial Mining Setup Costs
- Intial setup of Qty 3000 KNC Neptune miners at $10,000 USD per miner calculates to $30 Million in hardware purchase.
- Electicity setup is approx $300,000 per site.
- Qty 900 broken mining machines = approx $4 Million in hardware purchase
- Total of $34.3 Million per site * 6 Sites
- Total of $205 Million in hardware and site setup fees.
- Therefore, still a very profitable venture indeed....Gross profit of $3000 per day; not including rent, employee salary and other misc charges.
- Estimating salary of $10 per hour ($240 per 24 hour day or $87,600 USD yearly) per employee (2 per site - 24 hours a day).
- Net profit calculation of around $2500 USD per day
- Net profit of $912,500 USD per year per site.
- With 6 sites...Approx $5.5M in net (tax free) income per year.
Quick Breakeven Analysis
- However, when you add the initial hardware costs...Looks like a break even of 37 years...Hopefully there is an error in the quick math above...or they will be waiting for a return on investment for a long long time.