Wattum is pleased to announce that we have secured a 12-month supply of 2,400 WhatsMiner rigs through a joint venture agreement with Integrated Ventures Inc. This expansion of our mining equipment inventory gives our clients around the world access to powerful mining rigs at competitive prices, even amidst a global shortage. 

Both companies have committed to purchasing a minimum of 1,200 units each of the model M31S/M30S WhatsMiner rigs manufactured by MicroBit. They offer a power efficiency of up to 42W/T and boast a hashrate of 80T – 110T based on the model selected. MicroBit will manufacture and ship miners starting in July 2021 on a monthly, on-demand basis. 

Wattum CEO Arseniy Grusha stated: “We are pleased to partner with INTV and to be an integral part of a 12-month Purchase Agreement with MicroBit, securing a supply of 2,400 units of WhatsMiners, models M31S/M30S – the most profitable and energy-efficient miners available. Both companies plan to collaborate on the expansion of distribution, mining, and hosting operations and plan to jointly launch data centers and mobile mining farms. We are looking forward to the next phase of mutually beneficial and profitable cooperation, with a focus on establishing Integrated Ventures and Wattum as leaders in the rapidly growing cryptocurrency market.”

“[Integrated Ventures] is very pleased to partner with Wattum and secure this valuable 12-month purchase agreement, especially during a period of a limited supply of mining equipment,” commented Steve Rubakh, CEO of Integrated Ventures, Inc., “This agreement expands the existing relationship with Wattum and represents another step in INTV’s strategic growth plan, designed to rapidly increase the Company’s projected revenue growth rate.”

This transaction is the latest in a set of actions taken by Wattum in order to fuel international expansion plans. Most notably, we recently announced a multi-year partnership with Integrated Ventures to execute colocation and hosting for their cryptocurrency mining operations in Kennerdell, Pennsylvania. This agreement will maximize and optimize hash rate, reduce direct mining operational costs, and provide further international reach of both companies. 

Wattum has additionally begun expansion into Kazakhstan, adding to its existing operations in the U.S., Canada, and Russia. This is not our only recent geographical expansion as we have also opened a sales office in Argentina, kindling our growth into the South American market with a dedicated team to contribute to the up-and-coming Bitcoin mining hotspot.

With this large acquisition of Bitcoin miners, Wattum is once again taking steps to ensure our customers have access to high quality mining equipment at competitive prices. To get started on your Bitcoin mining adventure, browse our available mining rigs today.

Resolute to ongoing expansion efforts, Wattum Inc. announces a new partnership with the world’s largest crypto mining data center, Enegix LLC, based in Kazakhstan. The partnership will see the build-out and operation of a 16 MW facility, a commitment totaling $2 million USD.

With construction planned for July 2021, the two industry pioneers are in discussions for the financing and construction of an additional facility, adding another 50 MW to their proactive efforts. The estimated cost of this second facility amounts to $8 million USD.

“Interest in cryptocurrency mining is on the rise, and this partnership with Wattum will extend Enegix’s presence to the US. It will serve as a bridge for US customers while allowing international interest to grow and direct its attention to the many opportunities presented by Kazakhstan.”

– Yerbolsyn Sarsenov, CEO & Cofounder, Enegix LLC.

Because interest in cryptocurrency mining is on the rise as a lucrative investment, Wattum will be providing Enegix with a significant bridge into the US market through this partnership. Extending their reach to enthusiastic customers across the country, Enegix will establish its presence in the US by providing customers with an opportunity to access a reputable data center hosted in a country that has an energy surplus of 4000MW.

Currently operating a 180MW facility in Ekibastuz, Kazakhstan, Enegix is the largest-capacity data center in the world and accounts for more than 2% of the world’s Bitcoin hashrate at full capacity, which sits at 50,000 mining rigs.

This partnership with Enegix LLC cements Wattum Inc’s position as an industry leader in innovative collaboration and hints towards future plans for expansion.

“Wattum is pleased to be working with Enegix, once again collaborating to bring innovation and optimization that contributes to Kazakhstan’s growing recognition as a global Bitcoin mining leader that will revitalize the international Bitcoin industry. This venture will cement Wattum’s position in this developing industry while providing the best possible hosting opportunities to our clients. We have proven ourselves as a proactive organization, consistently making moves to better position ourselves and our partners for long-term growth.”

– Arseniy Grusha, CEO & Founder, Wattum Inc.

Mining, Opinion

Why Mine Bitcoin in Kazakhstan?

June 10, 2021

Contrary to popular belief stemming from its portrayal as a “third-world peasant country” in Borat, Kazakhstan is in fact a relatively safe and affluent country, hosting more than 6% of global Bitcoin mining hash power. The Kazakhstani government has shown support for domestic Bitcoin mining, recently announcing a planned cryptocurrency and blockchain technology roadmap aimed at stimulating those industries through a reduction in current regulations. The nation’s growing enthusiasm toward cryptocurrency is yet another example of crypto mining gaining an international presence.

One of the World’s Top Four Crypto Mining Destinations

As a crypto mining hub that currently ranks 4th in the world in terms of hashrate power, coming in after China, Russia, and the United States, Kazakhstan boasts many benefits including energy prices which are among the world’s lowest. Equipment imports such as fans and transformers are sourced either locally or nearby from Russia, resulting in a 30-50% cost savings in comparison to having them built in the U.S. Additional savings are seen in low costs for labour, management, and repairs. In an industry that requires enormous amounts of power consumption, these cost savings can make a monumental impact on miners’ bottom line.

The country’s central location within the CIS also allows for cheaper import duties and shipping costs, with some import options as low as 0%. Furthermore, Kazakhstan is one of the least densely populated nations on earth, ranking just below Canada and resulting in a large amount of well-priced land being available for mining farms. International interest has been sparked by this opportunity, with reports of a nearly $10 million USD investment for the construction of a mining data center that is expected to reach a power capacity of 100MW, further speaking to the lucrative nature of crypto mining in Kazakhstan that continues to be recognized and acted upon. By the end of 2020, Kazakhstan was already accounting for nearly 6% of the world’s cryptocurrency mining, which has since been amplified by knowledgeable investors.

Local Resources that Amplify your Investment

The climate in Kazakhstan provides ideal circumstances for optimal mining efficiency at these farms as cool temperatures year-round averaging at 50-60 degrees fahrenheit, and rarely exceed 80 degrees fahrenheit during the summer months. The maximum temperature that is tolerated by mining equipment sits at 90 degrees fahrenheit, after which point equipment must be turned off and allowed a cool-down period, while power supplies generally start to burn out at the 85 degree fahrenheit mark. This is avoided at mining farms in Kazakhstan; a significant benefit leading to support of the mining industry on behalf of the local ministry which has committed to helping grow these operations with an investment of over ₸80 billion Kazakhstani tenge ($180 million USD).

Low real estate cost ($5,000/acre of land), low energy prices ($0.032 kwh), low labor costs ($3/hr – $5/hr Engineer) within this region will only amplify this growth, with plans for further investment that will benefit both the government and miners as a steady surplus of electric power (4000 MW) in Kazakhstan enables the government to sell excess electricity for a profit that can be invested back into the expansion of Bitcoin mining. Interest in the region is being cemented as the international mining community continues to uncover the multitude of attractions offered, including metropolitan hubs and diverse wildlife which come together to challenge Kazakhstan’s famous depiction in the entertainment industry. As our own industry has faced its fair share of backlash in the eyes of entertainment, overcoming those boundaries and creating innovative solutions for success are the common practices that make crypto mining and Kazakhstan a compatible force that has yet to demonstrate its full potential.

Wattum has developed strong ties within the country and has fostered a mutually beneficial relationship with the government as we work closely with Enegix to realize the goal of building a new venture that will see Wattum as a 50% equity holder. Enegix’s mining farm is one of the largest in Kazakhstan and utilizes land leased from the government, fueling Wattum’s ongoing interest and investments in this region and confidence in its suitability for Bitcoin mining. Wattum’s trusted partners at the Enegix facility ensure that customers have access to highly affordable repairs whenever their equipment needs it.

How Government Support is Fuelling International Interest

With the Kazakhstani government’s outspoken support for Bitcoin mining in the region come a number of plans for reducing regulations and implementing digital currency in ways that will establish Kazakhstan within the global crypto market. While there are currently no goals for entirely replacing cash and other forms of payment with Bitcoin, Kazakhstan’s central bank has issued an official report on a potential central bank digital currency (CBDC), as well as made suggestions for the ways that crypto exchanges can begin to interact with local banks. A prototype of a digital tenge is currently in its first stages within the private sector of the financial industry, with the potential for an official launch enthusiastically backed by the National Bank’s eagerness to conduct further research into its benefits and implications for financial stability.

Support for cryptocurrency from the Kazakhstani government is no recent development. Plans for doubling the country’s investment in crypto mining commenced during the summer of 2020, with May 2020 seeing commentary from the Kazakh president’s advisor Mu Xin, proposing the introduction of blockchain technology and the digital Tenge; such developments would pose significant advantages for Kazakhstan, with efforts to mitigate corruption and increase transparency of state fund allocation supported, further fuelling the country’s interest and support in expanding their Bitcoin mining operations and reducing regulations that will continue to enable international interest.

Partnering with a Trusted Host

When you choose Wattum to host your mining operations, you can be confident that you are investing in facilities optimized for efficient Bitcoin mining through a trusted management firm. Wattum customers hosting more than 1 MW with us are welcome to visit our facility at any time to see their investment firsthand and learn about the mining process.

Building upon the inherent security of mining cryptocurrency in Kazakhstan, we at Wattum offer each of our customers the opportunity to add advanced protection to their investment by subscribing to Wattum Care, Wattum Care Plus or Wattum Care Ultimate, an innovative program that will be launching soon. Additional protection measures include theft coverage, machine repair, power supply replacement, and water and fire damage coverage based on the level of Care program that you select.

When you purchase mining equipment today, you lock in the cost of equipment at today’s mining prices which are significantly lower than the direct market value of Bitcoin, helping you to save money as Bitcoin prices continue to rise. Reap the benefits of investing in Bitcoin mining today by partnering with Wattum, your dependable crypto mining custodian, and make the most of the opportunity to maximize profits as mining equipment is depreciable on tax returns and ensures not only a safe investment, but further opens doors to new opportunities presented by this growing industry, such as mining pools and colocation expansion.

Chip manufacturing giant Nvidia has increased measures to ensure GPU cards get into the hands of gamers, rather than cryptocurrency miners. It’s a change that is expected to bring further price increases for GPU rigs, even beyond those brought on by the global chip shortage. In this article, we’ll explain Nvidia’s hashrate restrictions, consider older GPU models, and discuss our recommended alternative: the Nvidia CMP HX Series.

Significant spikes in the price of Bitcoin in 2021 have increased demand for crypto mining equipment, leading miners to buy out entire supply chains of Nvidia GeForce cards, depriving gamers of essential tools for their trade. To level the playing field between their two major customer segments, Nvidia is drawing clearer lines between gaming and crypto mining equipment.

New Releases to Limit Hashrate

Nvidia has implemented anti-mining hardware flags in their stock that will halve the hashrate for Ethereum mining on several leading models. Products released after May 2021 from the GeForce RTX 3080, 3070 and 3060 Ti graphics card lines will feature a “Low Hash Rate” (LHR) sticker, indicating their unsuitability for crypto mining.

This is Nvidia’s second successive deterrent attempt, following a failed one in February with their RTX 3060. The GPU was meant to halve the effectiveness of Ethereum mining rates, a move claimed by the company to be “unhackable”. However, a developer-specific beta firmware driver released soon after easily unlocked the GPUs full mining capabilities, making the item a hot option for mining once again.

This past misfire breeds doubt on the upcoming limiter’s ability to withstand hackers. This will remain unknown until the products’ release; in the meantime, miners can utilize the limited mining-specific cards offered by Nvidia.

The company’s dedicated line for crypto mining, Nvidia CMP HX, offers GPUs. The spot prices on in-stock cards will likely cost 25-75% more than the pre-order price due to a limited available quantity. If the going rate today is $28-$30/MHz, expect these cards to sell for $35-$38/MHz when they arrive in August.

What About Older Models?

Graphics cards released before the introduction of the hashrate limiter are currently out of stock everywhere. Any online retailers with availability that are selling these cards are likely referring to old batches from 2020, still left in a warehouse. Wattum still maintains an inventory of the Nvidia 2070 cards, which remain profitable in addition to being cheaper per MHz.

Both new and old generation card models are of high quality; their functionality in this case is dependent upon your specific needs or preferences. As neither generation is still in production, their resale value holds steady and will only continue to go up as Ethereum (ETH) prices rise, whether they are new or used.

Savvy miners want to purchase hardware that can be resold for the same price or more than you bought it. In the next 3-5 years, if Ethereum (ETH) is trading at $10,000 as projected, mining hardware bought today may appreciate in value, adding to the mining profits earned during those years.

The Best Nvidia Card for Crypto Mining

Should you prefer to purchase cards that will outlast 2 years, alternative models such as Nvidia’s CMP 90HX rig are a notable contender. While they do carry a higher retail price than those designed for gaming, they hold 10GB of memory which will remain functional for your next 3-5 years of GPU mining. Specifically designed for crypto mining, the 90HX uses 25% more power than the 50HX, yet they yield double the cryptocurrency. A slightly higher investment now projects to earn a significantly higher profit throughout the lifetime of the machine.

Since its launch earlier this year, the CMP series has already gained immense popularity. In March, one buyer alone submitted an order worth $30 million, with the units intended primarily for mining on “alternative blockchain networks”.

The 90HX, which is comparable to the 3070 – 3080 RTX GPU mining rig, is our top choice for GPU mining and is currently available in limited quantities. Purchasing now gives you maximum time to profit from rising ETH prices and an increased coin yield before prices increase as demand rises.

Announcements, Partnership

Wattum and ViaBTC Announce Global Strategic Partnership

June 3, 2021

Wattum is pleased to announce a strategic partnership with ViaBTC Group, which consistently ranks within the top 10 for total Bitcoin hash power among mining pools.

ViaBTC is a globally recognized Bitcoin mining pool and cloud mining contract provider specializing in blockchain technology. Within the year preceding this writing, they have accounted for 7.14% of global hashrate. Their partnership with Wattum brings together a shared dedication to providing clients with reliable and efficient digital asset management services.

ViaBTC CEO Haipo Yang remarked, “It’s always such a pleasure to work with the Wattum team. Their professional standards and commitment to providing high quality work puts them a step above the rest.”

In Q1 of 2021 alone, Wattum has transformed $1.5 million in funding into $58 million, a 3800% return. With over 720 existing mining pool customers, Wattum is well-established as a trusted, lucrative pool generating significant returns for their customers.

In light of this partnership, Wattum will be offering a new customer rate, reducing Pool Fees to just 1% if the customer purchases equipment and/or management services as well. Wattum also conducts profit testing through monthly pool audits and provides mining pool services to a vast range of clients, from individual miners to large-scale data hosting centers.

With a diverse set of offerings including equipment, hosting, management and mining pools within the cryptocurrency market, Wattum’s comprehensive value proposition is strengthened by this deal. Our company profile anticipates a rise within the cryptocurrency industry in the U.S. and internationally, amid the most significant cryptocurrency mining boom as historic regulatory barriers are being broken down.

U.S.-based crypto mining management company Wattum has recently partnered with data center operator Enegix to expand hosting availability at their Kazakhstan Bitcoin mining facility by 8MW. 

Enegix’s Facility

Based in Kazakhstan, a nation that is home to a whopping 4,000 MW electricity surplus, Enegix’s data center is already one of the largest in the world, with plans to increase its capacity by an additional 500 MW in 2021. Based in an ideal shipping location, the country also presents a low 12% import value added tax (VAT) alongside import options as low as 0%. The fully compliant facility is optimized for safe mining operations thanks to an ideal climate for air cooling, on-site ASIC repair availability, and on-site personnel accommodation. Giving equipment owners peace of mind, the high-voltage infrastructure is protected by video surveillance and armed security. This facility was built to provide premier hosting opportunities for miners, which Wattum customers can now take advantage of.

Wattum’s Hosting Growth

As one of the leading providers of mining equipment hosting and maintenance services, Wattum offers the lowest prices for facilities within the U.S., Canada, Russia, and now Kazakhstan. Boasting a minimum of 99% equipment uptime, uninterrupted network operation, and uninterrupted power supply, Wattum is synonymous with reliability. Monitoring is provided by on-site technicians with 24/7 customer support. To ensure you get the maximum lifetime out of your mining equipment, Wattum’s specialists carry out routine maintenance and diagnostics of mining equipment. They also monitor mining equipment control of current conductors using a thermal imaging device, alongside routine visual inspections by certified technicians.

Declining Global Hosting Availability

With tightening regulations leading to a precarious Bitcoin mining climate in China, the global leader in hashrate production, many miners have looked to other regions with lower risk to host their mining hardware. This has resulted in an increased demand for credible hosting facilities around the world, particularly those headquartered in the U.S. Through this partnership with Enegix to increase available hosting space, Wattum is an American-based company taking proactive steps to ensure that its customers have ongoing access to secure, reliable hosting at competitive prices, even in an ever-changing global regulatory landscape. Wattum offers a variety of services such as new and used equipment sales, hosting, management, firmware, and mining pool opportunities.

An Investment Opportunity that Pays for Itself

With these shifts in the global playground of crypto mining gaining widespread recognition, developments have already been seen in the demand for mining equipment as participants from all over the world recognize the lucrative investment. While the current market price of Bitcoin sits at nearly $40,000 at the time of writing, purchasing a rig for under $10,000 and mining Bitcoin allows you to invest smaller increments every month whilst getting a significant return on your investment. Mining equipment is fully depreciable on your tax returns, and since it’s typically priced at a 12-month payoff from the current Bitcoin price, the period of time that it takes to pay off your equipment will decrease should Bitcoin prices increase, as they are now.

Bitcoin’s recent boom and widespread adoption has many curious about how they can capitalize on the rise of the world’s new form of currency. If your familiarity with Bitcoin is more-or-less limited to what you’ve read in Elon Musk’s tweets, fear not: Wattum has you covered. This guide is your crash course on Bitcoin mining: the what, the why, and the how.

What exactly is Bitcoin?

Bitcoin is the world’s first decentralized cryptocurrency, first introduced in 2009. Free from the control of any central bank or entity, highly secure, and virtually impossible to forge, Bitcoin addresses many of the problems we face with traditional fiat currency. To mitigate against inflation, the total supply of this digital asset is limited to 21 million coins, which can never be increased. Each coin can be divided into a hundred million pieces, named “Satoshis,” after the creator of Bitcoin. Individual Bitcoins are created through a complex yet relatively accessible process called mining, which has evolved into a major industry as Bitcoin’s price has risen sharply in recent years.

Bitcoin is decentralized, meaning there is no intermediary between holders during transactions. Our existing financial systems are centralized, with central banks controlling the flow of capital.

One of Bitcoin’s main value propositions is its decentralization, meaning that there is no intermediary between owners of the currency. This allows individuals to send currency without going through a bank or a central authority, empowering crypto owners. This utilizes Blockchain technology, which is the process of using the same general ledger to track all transactions. Each block of the chain has corresponding signatures that create the chain, irreversibly putting the information in a specific order that cannot be tampered.

Bitcoin utilizes Blockchain technology, which records all transactions onto the same general ledger, meaning people cannot change previous entries. This keeps Bitcoin secure and virtually unhackable.

How does Bitcoin mining work?

Like gold, part of what makes Bitcoin scarce is that it needs to be ‘mined’. In fact, the process of mining cryptocurrency actually bears similarity to mining gold: to mine Bitcoin, people dedicate computing power to ‘chip away’ at complex cryptographic equations, which serve to verify blocks of transactions. These transactions are then documented on a virtually unchangeable distributed ledger. This means past transactions cannot be altered and forgery is impossible. In exchange for their computing power, miners are compensated with a small amount of new Bitcoin. This is the only way to introduce new Bitcoin into circulation.

Bitcoin miners help secure the cryptocurrency through lending their computing power to verify transactions. They are rewarded by earning small increments of Bitcoin.

Where’s the money in Bitcoin mining?

Miners collectively earned more than $1.1 billion worth of Bitcoin in January 2021 alone. The value of Bitcoin is determined by the markets on which it is traded, typically dedicated cryptocurrency exchanges. Like any scarce asset, Bitcoin’s value increases with demand. With Bitcoin’s remarkable ascent to $50,000 from mere pennies, many investors have made fortunes. As Bitcoin continues to breach the mainstream, experts predict that hitting its new milestone of $100,000 is not too far off.

How can you mine Bitcoin?

  1. Purchase a Bitcoin mining rig. To begin mining, you first need the right computing equipment. Purpose-built ASIC mining rigs are special hardware used to mine Bitcoin at an incredible speed. Due to their significant electricity, cooling and maintenance needs, these mining rigs are typically hosted at dedicated hosting facilities.
  2. Get a Bitcoin wallet. Bitcoin wallets allow you to receive your Bitcoin and do with it as you please. Software wallets are optimal for beginners because they are relatively secure, but still easy to manage. For more serious miners, hardware wallets can offer enhanced security, although they generally come with a higher price tag.
  3. Install mining firmware on your mining rig. These mining programs allow you to stay connected to the blockchain and Bitcoin network. This allows you to monitor your miner from a distance and also receive complete information about your mining work.
  4. Start mining. Following these three steps, you are now ready to mine!

ALTERNATIVE: Join a mining pool. With huge mining farms around the world, it can be hard for a single miner to compete to mine Bitcoin. This is mitigated by the use of mining pools, which combine the computing power of numerous miners and then divide the mined Bitcoin amongst the members according to their power contribution. Typically charging a nominal 0-2% of the gained reward as a pool fee, mining pools typically deliver lower, but more consistent profits. There is also a small 0-2% of the gained reward that is paid to the pool as a fee.
Want to make the mining process even easier and lower maintenance needs? Consider Wattum’s professional hosting and management services. With Bitcoin mining operations in the United States, Canada, Russia and Kazakhstan, Wattum is an established player in the industry that will make sure your mining hardware is running at peak performance.

Announcements, Mining

Wattum Expands Operations with Argentina Sales Office

May 28, 2021

Wattum is pleased to announce that our expansion into the South American market is underway with the opening of a new office in Argentina, an up-and-coming Bitcoin mining hotspot.

With this announcement, Argentina joins the United States, Canada, Russia, and most recently, Kazakhstan as part of Wattum’s global footprint, extending our international presence in the Bitcoin mining industry. Our Argentina operations will be headquartered in the city of Martínez, located just 10 minutes from capital city Buenos Aires.

Located relatively near to the South Pole compared to the rest of South America, Argentina’s temperate climate makes it an ideal region for Bitcoin mining. A recent feasibility study showed that expensive cooling techniques like liquid immersion were not necessary, with fan cooling being sufficient. Compared to the company’s operations in Quebec, Canada, its Argentinian site presented a 45% cost savings.

In the near term at this new location, Wattum will primarily be providing equipment to wholesale clients, as well as hosting services for individual clients. As this operation continues to grow, Wattum plans to offer both management and technical support to customers. With an initial capacity of 50 GPU rigs, the Argentina location is ideal for mining altcoins like Ethereum or Zcash. In the long run, Wattum has a vision to deliver quality resources and seasoned expertise to the South American market, enabling mining investors to capitalize on our team’s rich experience that has been refined and proven around the world.

As Bitcoin continues to gain international momentum, particularly in South America, investors need to have a trusted and experienced global player on their side. With competitively-priced ASIC and GPU mining equipment, trusted hosting and management services, and an official partnership with one of the top Bitcoin mining pools, Wattum is your ideal partner to get the most out of your mining investment. In the midst of high Bitcoin prices and new proposed tax implementations, Bitcoin mining is fully depreciable and offers secure returns not only through direct coin mining, but also in the value of the equipment itself as reputable resellers such as Wattum have demonstrated through a series of successful sales and partnerships since the start of the new year.

These days it can be difficult to determine where to place investments, particularly with the real estate market being wildly inflated due to the COVID-19 pandemic. Many investors have taken a more cautious approach, seeking safe assets with predictable marginal returns. Recent developments driving mainstream acceptance of cryptocurrencies have positioned the once-risky Bitcoin as a secure investment with steadily high returns. Stocks and cryptocurrencies are hitting record highs, making it a prime time for new investors to break into the bullish market by directing an investment into Bitcoin mining. The best part is, these high returns don’t require a significant amount of your time and have benefits that cater to you when tax season rolls around.

With cryptocurrencies overtaking the U.S. dollar in terms of total value in circulation, and the Federal Reserve publicly stating their acceptance for digital currency, the future is looking bright for Bitcoin miners. Ethereum alone is currently worth more than the Bank of America, with Ethereum’s market cap standing at a whopping $400 billion compared to BAC’s market cap of $358.5 billion. The government has even created space for cryptocurrency on official tax returns, further validating the long-term relevance of these assets.

Gone are the days where Bitcoin was written off as a fly-by-night experiment. With large companies like Visa and Paypal accepting Bitcoin on their balance sheets, it has become safer than ever to invest in the world’s original cryptocurrency. With that safety comes the opportunity for everyday investors to take an active role in crypto mining, something that was previously reserved for individuals in the crypto-focused in-groups of secluded online chat rooms.

Beyond the value of the coin itself as an asset, the advantages of Bitcoin mining are also coming to light, both to maximize profitability and to save during tax season. How is this possible? Let’s take a look at the Antminer S19 miner, which you can purchase now for less than $15,000, to showcase these benefits.

Get Involved and Maximize Profits

Rather than purchasing Bitcoin on an exchange, you can purchase an Antminer S19 mining rig for less than $15,000 and mine for years to come, obtaining a full return on investment within a projected 12 months. While the prices of different mining rigs can vary, they continue to provide a profitable investment in comparison to high Bitcoin prices that are projected to fall no lower than $22,000 for the remainder of 2021. Further predictions see the price of Bitcoin reaching an all-time high of $100,000 by the start of the new year.

Seeing as Bitcoin has maintained a steady value this year thus far, investing in Bitcoin mining is a secure move, especially with the considerations of mining rig resale values and the Biden administration’s proposed Capital Gains tax. Even as Bitcoin prices fluctuate, new and used mining rigs maintain their value, as was seen in 2018 when Bitcoin plummeted to $3,500 yet used rigs that were selling for $70/THS at the peak of 2017 were sitting at $11.50/THS and still producing.

When Bitcoin climbed to $45,000 two years later, the same rigs went from $11.50/THS back to $70/THS and peaked at $115/THS. Those who maintained their rigs with low hosting and power prices had a secure batch of produced Bitcoin over the years from the mining rigs, as well as a batch of Bitcoin mining equipment and the choice to sell and increase their profits.

Computer Hardware – Your Best Friend during Tax Season

All mining equipment purchased is fully depreciable on tax returns as it falls under the computer hardware category, qualifying for depreciation if purchased after September 2017 and allowing you to continue mining your investment. This means that you can depreciate your hardware and save on other income, with any crypto earned through mining or staking crypto being taxable as income rather than capital gains. These tax provisions can save Bitcoin miners significant amounts of money, especially with the Biden administration’s recently proposed increase in capital gains taxes, which is an attractive prospect considering Bitcoin miners such as the Antminer S19 are estimated to produce a profit for up to 36 months.

As we mentioned above, these benefits are not just restricted to career Bitcoin miners but are open to all investors looking to put their money somewhere that matters. If you are looking to get started today, Wattum Management has a range of equipment options that you can choose from. Our world class advisory team can let you know exactly how to get the Computer Hardware Category working for you at tax time. If you are just getting involved in crypto, Wattum also offers services such as hosting, management, and a competitive mining pool to give you the benefits of crypto without the stress of having to set up a mining process of your own.

With a commitment to helping customers and crypto enthusiasts alike, and a team knowledgeable in both the American and international Bitcoin landscape, Wattum is your best bet for a successful entrance into Bitcoin mining that will provide long-term stability and efficiency for your investment as well as the highest possible returns. We are excited to support you in making educated mining decisions that maximize potential profitability and establish long-term success.

Canaan ($CAN), the Chinese supercomputing firm and ASIC mining pioneer, has reported a $33 million net loss for 2020. Bullish Bitcoin prices were not enough to overcome the effects of a global chip shortage, stalling the production of Canaan’s popular Bitcoin mining machines and causing inventory backorders to pile up. These effects were exacerbated by COVID-19 supply chain disruptions, but are beginning to see a significant turnaround.

Their 2020 net loss, as reported in the Bitcoin miner manufacturer’s unaudited financial report for Q4 2020, was notably lower than their 2019 loss of $148 million. As Bitcoin prices hold steady, Canaan shows optimism in this trend of loss reduction.

The company has been consistently reducing their net loss, with Q2 2020 experiencing a 90% year-over-year reduction due to the sale of mining rigs, which experienced significant growth on their gross margins.

Despite reported losses, the company shows optimism for the upcoming year and forecasts a Q1 2021 revenue target of $61 million, with significant growth driven by the large volume of Bitcoin mining hardware pre-orders as Bitcoin prices foresee another climb.

While their mining rigs were selling for $10 per TH/s in 2020, 2021 sales have already been ranging from $50 to $80 per TH/s, and they’re only expected to continue going up.

This activity is indicative of the current demand within the crypto mining industry that only continues to rise, reflecting ongoing global shortages of mining rigs. With Bitcoin further advancing its reach, gaining acceptance and entering the mainstream payment market with services such as Cash App accepting the digital currency on its platform, it’s safe to say that prominent names within crypto mining will continue to see significant growth as the year progresses.

Looking forward, Nancheng Zhang, CEO of Canaan, stated:

“Although the outbreak of COVID-19 caused supply chain disruptions and thus negatively impacted our revenues in the fourth quarter of 2020, our market leadership has enabled us to attain $174 million contracted orders with $66 million of cash advance from customers as of December 31, 2020, thus laying a solid foundation for substantial revenue growth for 2021.”

With many leading mining hardware manufacturers being plagued by supply shortages amidst Bitcoin price spikes, seeing a reach to an all-time high, mining rigs have become scarcer than ever. Proactive resellers like Wattum Management have preempted this shortage, stocking up on inventory of cryptocurrency mining hardware and purchasing over 2,400 Canaan miners in a $13 million deal. The rise in price per TH/s continues with the foreseen steadiness of Bitcoin value, creating an ample opportunity to invest in such hardware and equipment.