The Setup
Back in May, I decided to dip my toes into Bitcoin mining. Bought a Bitmain Antminer S21 PRO (234 TH/s) for 0.04659424 BTC (€4,315 including shipping) and arranged hosting in Dubai. The numbers looked decent on paper - 0.075 USD/kWh advertised rate, professional hosting facility, what could go wrong?
The Numbers Don't Lie
Purchase: 0.04659424 BTC (€4,315 including shipping)
Setup & Deposit: 0.00504895 BTC ($522.87)
June Power Bill: 0.00160614 BTC ($171.85) for 1,937.52 kWh
Total Mined: 0.00218297 BTC
Net Profit for June: 0.00057682 BTC (36% of hosting costs)
What Actually Happened
The problems started immediately:
- Delivery delays: Almost a month to get delivered and plugged in due to "no hosting spots available"
- Hidden costs: That 0.075 USD/kWh rate? They add a 10% margin on factory wattage specs (3,510W becomes 3,861W or 0.075 USD/kWh becomes 0.082 USD/kWh)
- Temperature issues: Hosting site probably runs hotter than the advertised 35°C
- Payment friction: Monthly invoices payable in USDT only (shitcoin²)
- Management fees: Additional $12/month on top of everything
The Hardware Failure
Three weeks in, one board stopped working. Went from 234 TH/s to about 67% capacity, then completely died. Now I'm waiting 2+ weeks (and counting) to get it shipped to Bitmain for warranty repair.
The Math Reality
Even before the hardware failure, ROI in Bitcoin terms was looking grim. Just ahve a look at Smoking Hopium calculator.
It's hard to compete in Bitcoin terms with people that are just looking for profitability in USD.
The Silver Lining
At least I get to use my own pool (Ocean with Datum, so my Bitcoin node builds the blocks). That's pretty cool and my main motivation for having some decent hashrate.
Lessons Learned
- Stay humble, stack sats
- Hosted mining has way more friction than advertised
- If I ever mine again, it'll be a home setup with solar (thinking Avalon Q or similar)
- The hosting company's incentives aren't aligned with yours
- Hardware failures happen
Would I Do It Again?
Nope. The complexity, hidden costs, and lack of control make hosted mining a poor choice for most people. You're better off just stacking sats directly.
If you're considering hosted mining, factor in:
- 10-15% higher power costs than advertised
- Inevitable hardware failures
- Payment processing friction
- Management fees
- Shipping delays and logistics headaches
The only scenario where I'd mine again is with my own equipment, my own power (solar), and my own facility. At least then when things go wrong, I can fix them myself.