Crypto mining farmers: The biggest players in the industry

Crypto mining farmers: The biggest players in the industry

Since the bitcoin (BTC) price rose to its all-time high of $20.000 at the end of 2017, bitcoin mining and cryptocurrency mining in general have gained more and more popularity. While in the beginning of bitcoin people used to mine bitcoins with their old laptops as a hobby, nowadays also fast-moving businesses with big capital became part of bitcoin mining.

What is a mining farm?

A mining farm is an operation in which multiple mining rigs, such as ASIC miners, and one or more people are involved. In many cases these mining farms can be found in warehouses that are specifically allocated to house a mining farm. Fundamentally a mining farm isn’t in any way different from a single person mining with an ASIC miner at home. 

The only difference is the scale. Many of these mining farms operate thousands of mining rigs at the same time. It is for this reason you see them mostly stationed in areas with cheap but stable supply of electricity. Also, giant fans and cooling systems are installed to ensure proper cooling of the equipment.

World’s biggest mining operations

Mining farms are in many cases multimillion euro operations. It is not surprising that some of the worlds biggest mining farms are operations set up by the world’s biggest mining rig manufacturers themselves. These are some of the biggest cryptocurrency mining operations in the world.

Bitmain in Mongolia

Bitmain, a well-known cryptocurrency miner manufacturer, has a mining farm in the middle of the countryside of Mongolia. In the Bitmain SanShangLiang industrial park a mining complex is located that houses thousands and thousands of mining rigs. It is estimated that Bitmain operates over 25.000 mining rigs here. The complex consumes, unsurprisingly, energy amounts that are comparable to the consumption of a small village, but is nevertheless profitable. 

Giga Watt in Washington, USA

Giga Watt used to be one of the biggest mining farms. Making use of cheap electricity generated by a hydro dam it was able to compete with the bigger operations in China. During its hay days it operated almost 2.000 GPU’s and was able to produce a hashrate of 30 megawatt (MW), a significant hashrate in 2018. However, as the bitcoin price fluctuates strongly sometimes, a mining farm can go out of business really quickly – as was the case for Giga Watt when it filed for bankruptcy in November of last year.

Can you have a mining farm?

It might look like only the wealthiest companies can run a mining farm. However, virtually anyone can set up a mining farm. All you need is a couple of ASIC miners, connect them to the internet and you have your own mining farm! However, as this scale of farm is relatively small, it will be tough to compete with giant mining operations like Bitmains farm in Mongolia. Still, cryptocurrency mining on a smaller scale can be profitable nowadays!