The Profitability Guide of Antminer S19 ASIC in 2022
What is S19
Case Work Through
Bitcoin’s cryptographic protocol is built based on SHA-256 (Secure Hash Algorithm), a function developed by the US National Security Agency. The Bitcoin blockchain ensures the transparency and integrity of transactions through its DLT (Distributed Ledger Technology) and the underpinned SHA-256 hashes. Since there is no central entity to confirm auditing the consensus, Bitcoin achieves its network through Proof of Work. Valid blocks are created and chained one by one, the block creators or validators, and commonly referred to as Bitcoin miners.
Miners compete with each other to create a new block with the incentive to receive block rewards – the Bitcoin digital currency. In 2022, each Bitcoin reward is 6.25BTC. To operate Bitcoin mining, we need HPC (High-Performance Computing) machines. It is also referred to as ASIC (Application Specific Integrated Circuit) machine for the Bitcoin context. Due to the rise of the total Bitcoin blockchain hashing power, you can no longer mine Bitcoin with CPU, GPU. The ASIC machine has a single-purpose build-in system (Hardware + Software) for solving the Bitcoin mining puzzle. Think of a brutal force attempting to guess a puzzle. In other words, the faster you can endeavor different answers, the higher possibility you can find the solution.
Bitmain Antminer S19 series is one of the top ASIC lines in the market for Bitcoin mining. It comes with different models, for example:
Each model comes with a different specification for mining. (and each batch from the manufacturer may be slightly different as well)
We will pick Antminer S19J Pro (100Th) as an example to work through its profitability guide below.
S19 lines are considered the best industry-leading level Bitcoin mining rigs (can also work for other SHA-256 based cryptocurrencies).
- Model: Antminer S19J Pro
- Hash Rate: 100TH
- Power Consumption: 2950 watts
- Network: Ethernet
- Noise Level: 75db
- Weight: 15KG
- Size: 195 x 290 x 370mm
- Chip: 5nm
- Operating Temperate: 5-35 Celsius
- Operating Humidity: 5 – 95%
We will focus on critical indicators in computing power, power consumption, and efficiency. These 3 are the key factors to picture your mining operation profitability.
Hash rate: this is the workhorse of the machines. 100TH means the ASIC conducts 100 trillion hash per second. So for each second, the ASIC machine performs 100 x 1,000,000,000,000 attempts to guess the puzzle. That’s incredible speed. This metric is the production rate of your machine.
Power Consumption: 2950 watts indicate the ASIC consumes 2950 watts of electricity per hour. Since you want the machine to keep running 24/7. It will consume 2950 x 24 = 70800 watt (70.8 kWh) per day.
Efficiency: ASIC measures its efficiency for its unit power consumption against per TH/S. In this case, 2950 / 100 = 29.5J/TH. Joule per TH. A unit of energy is required by computing a trillion hash per second. Some distributor references it as 29.5W.
Antminer S19 Pro is known for its supremacy of its high hash rate power while maintaining a relatively low power consumption. As a result, it is a super-efficient Bitcoin mining workhorse.
Let’s go through a simplified example better to understand the profitability calculation for your mining operation.
You run this S19J Pro 100TH ASIC machine locally in your garage or basement. Your local electricity rate is $0.12 / kWh cost.
The electricity cost for running this ASIC per day: 2950 / 1000 x 24 x 0.12 = $8.50
Electricity Per month is: 2950 / 1000 x 730 x 0.12 = $258.42 per month. (Note that, there is 730 hours average per month. 24 hours x 365 days / 12 months = 730)
Estimated Bitcoin mined per hour for 100TH/s within current network difficulty 0.00001908 BTC per hour or 0.00045798 BTC per day. Roughly about 0.0139284 BTC per month.
You can check how much BTC you can mine with your contributed hash rate: https://www.coinwarz.com/mining/bitcoin/calculator
At the time of writing, the BTC exchange rate is $45000, if you convert to fiat dollars, $20.60 per day, $626.78 per month.
So for your Bitcoin mining profit per day is $20.60 – $8.50 = $12.1
As we can see, electricity costs for mining are your significant ongoing operating expense. Therefore, you should reduce your electricity cost in the mining roadmap.
It is recommended that you host your ASIC machine in the colocation center, which has access to a cheaper electricity rate. For example, in the current market, some colocations in North America typically offer a $0.06 – $0.08 electricity rate for customers, depending on the mining operation scale. So let’s say if you managed to secure a hosting spot with a $0.065 rate, redo the calculation it will gets:
Mining Electricity cost: $ 4.60 per day, about $ 140 per month.
Mining Revenue in fiat dollar: $20.60 per day, $626.58 per month.
Bitcoin mining profit per day is $20.60 – $4.60 = $16 per day, or $486 per month.
Please note that this is a generic calculation illustration to gain an overall intuition of the profitability of S19J miner profitability. In addition, it serves as a start point for you to formulate your mining operation plan.
Keep in mind that other variables such as Network Hashrate, Difficulty Level, Bitcoin exchange price, mining pool fee, and some colocation partners that require a share percentage from 10%-20% depending on your service agreement are yet to mention the halving timing and impact.
Complete cost-profit analysis has more breakdown needs to be taken, and many more variable factors will be required to be set up.
Such specification of ASIC machine can cost upfront $8000 – $10000 per unit. The price fluctuates with the market situation and crypto-economic and availability, location, and suppliers.
As Bitcoin mining became more and more competitive, the arms race of hashing power. Older generation machines fade out quickly. While Moore’s Law is still applicable, its relevance has reached a physical limitation. Fortunately, these latest S19 generation models are built with high-end chips. The lifespan of these is typically four years within its competitiveness relevance.
If you want to keep on the mining operation, either hobby mining, retail mining, or scale to institutional mining level, planning the profitability calculation can help you raise your focus on critical areas, mitigate risks. As Warren Buffett ever said. “Someone’s sitting in the shade today because someone planted a tree a long time ago.”
Do not ignore the market trend, constantly review and renew your strategy to sustaining your mining operation. From a long-term perspective, securing a low rate electricity contract is the primary factor of profitable Bitcoin mining.
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