The recent crackdown on Bitcoin mining within China is likely to lead to an exodus of miners and equipment to other countries due to the imminent threat of a full ban. Chinese cryptocurrency exchange Huobi has also suspended its Bitcoin mining services, hosting services on its mining cloud platform, and the sale of mining equipment in mainland China. The company will be using this time to focus on overseas expansion, a strategy also adopted by Chinese miners and investors. This exodus begs the question of how miners around the world can capitalize on this expected firesale of scarce mining equipment.

Does this mean I can purchase this equipment for cheap in the U.S.?

Many Chinese miners are pursuing alternative routes to continue investing in Bitcoin, including the shifting of their operations to different locations. While many have been attempting to land hosting prices below $0.045/kWh, rates in the U.S. are much higher, with Wattum’s rates being among the lowest at an average of $0.05/kWh. Miners are unlikely to liquidate their equipment just yet, so high asking prices, import duties at a hefty 27% for the U.S., and shipping fees leave the purchasing price for this second-hand equipment at less than ideal rates.

The U.S. mining scene has been ramping up, with a power plant-turned-mining farm approaching completion in upstate New York, boasting a whopping 85 MW of power. However, nearly all mining space in the U.S. is pre-reserved, leaving little to no room for domestic hosting to handle an influx of equipment.

Accessing Trusted Hosting and Management

Wattum’s U.S.-based mining farm design and construction division charges up to $150,000 per megawatt (MW) for building a new mining facility. This price does not include land ownership, which increases expenses and limits flexibility and autonomy. Wattum plans to invest in a 50 MW hosting facility in Ohio, with expansion plans of up to 500 MW. Building costs and land ownership of this new facility will sit at $140,000/MW, with colocation services available to customers for as low as $0.039, further establishing Wattum’s commitment to customers in providing quality service at globally competitive rates.

As Bitcoin mining is a price-sensitive industry, Wattum has developed alternative hosting options in other countries to maximize margins for our customers in Asia, including a particularly attractive option in Kazakhstan. Kazakhstan’s government has embraced domestic Bitcoin mining, recently unveiling plans for a cryptocurrency and blockchain technology roadmap to stimulate these industries. Providing some of the world’s lowest energy prices, Kazakhstan also offers savings through affordable labour, management, and repair costs. Building a data center in Kazakhstan can cost as little as $125,000 per MW including land ownership. Contrasted with the cost of building colocation centers in the U.S., Kazakhstan is emerging as an ideal destination for Bitcoin mining.

A Budding Opportunity for the Eager Investor

As used Bitcoin mining rigs become available from Chinese miners, Kazakhstan may demonstrate what makes it so ideal. With readily available land, a welcoming government, and a shared border with China, Kazakhstan presents a highly attractive option for both Chinese investors looking to move their equipment, and international investors looking to acquire used mining rigs.

Recognizing this budding opportunity, Wattum has already taken proactive measures by developing strong ties throughout the country and with the Kazakhstani government. This has aided our planned joint venture with the founders of Enegix. Wattum also has plans to build a 15MW farm in Kazakhstan, which will offer affordable and secure hosting for our customers in a prime mining location.

Other companies are also moving to take part in this rapidly developing mining hub, including BIT Mining Limited which recently invested $9.33 million in the development of a 100MW mining data center in partnership with a local Kazakhstan mining company.

If you are interested in investing in colocation infrastructure in Kazakhstan, backed by a globally-recognized Bitcoin mining farm management company, contact Wattum to learn more.

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.

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.

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.

With more than 65% of the world’s hashrate production, China has become the clear cut leader in the market for Bitcoin mining in recent history. However, it appears that the nation’s distant lead is narrowing, as United States miners are expected to gain an additional 10% of the global hashrate market share within the next calendar year, according to Hashrate Index CFO Ethan Vera.

A major reason for China’s hashrate dominance has been lax environmental regulations and low energy prices. While tighter restrictions on carbon emissions are being rolled out across the country, the impacts on cryptocurrency mining capacity are particularly stark in three major hashrate contributor regions – Xinjian, Sichuan, and Inner Mongolia. These three collectively account for more than 53% of the world’s total hashrate.

China Decreases their Cryptocurrency Production

Many Bitcoin mining farms in these regions rely on non-renewable energy sources, most notably coal, which yields the highest carbon emissions among fuels. The Chinese government has pledged to sharply reduce carbon emissions in pursuit of ambitious climate goals. This, combined with concerns about the safety of some major coal mines, suggests that energy available for cryptocurrency mining may be reduced, at least in the short term.

The Xinjiang regulatory body is cracking down on unsafe coal mining practices, already decreasing production by 30% as a result.

The looming 2022 end of a local three-year hydropower policy that favourably affected miners in Sichuan is causing a shift amongst miners who are now hesitating to invest more in the region. Hydropower presents an alternative to coal-fired power plants, as the latter faces more regulatory enforcement. The shift to hydropower over other energy sources is more compliant and cheapest in the rainy season, despite potential power outages in dry months.

Inner Mongolia is facing an ultimatum from their National Development and Reform Commission, which stated on February 25 that all crypto mining operations needed to abandon the region by the end of April due to their high energy consumption.

Increased Regulations Make Room for US Miners

This increased regulation of Chinese mining and hosting is expected to make room for other regions of the world to capture market share in Bitcoin hashrate production. Currently next in line with 7% of global production in April, crypto miners in the U.S. are poised to make a significant push for crypto mining market share in 2021.

While the effects of tighter regulation in China should not be understated, the expected increase in U.S. hashrate production also owes itself in part to increased adoption of Bitcoin by major American financial institutions. Enthusiastic entrants to the American crypto mining market, combined with the gradual arrival of crypto mining activity previously carried out in China, are expected to drive scarcity in the market for crypto mining equipment, hosting and colocation services.

Wattum Management Leads the Way for US Hashrate Dominance

In Q1 of 2021, Wattum Management sold 20% of all North American equipment, grossing a sizable $60 million in sales. Wattum is now offering hosting at $0.05/kWh, giving customers access to reliable services at nationally competitive rates. If the crypto market continues to perform at its current rate, as many analysts are predicting it will, these rates will be next to impossible to beat.

Wattum is a reputable New York-based crypto management firm offering services such as new and used equipment sales, hosting, management, firmware, and mining pool opportunities.

About Wattum Management’s U.S. facility:

  • 99.9% uptime
  • Tax-registered and fully compliant
  • Based in New Mexico
  • 15MW capacity and is built out to 7.5 MW
  • Using 3-Phase 415/240 voltage distributed to 4 containers, and 2 buildings

Wattum is one of the leading providers of mining equipment and maintenance services in the United States and boasts competitive prices for our US, Canada, and Russia facilities. Our reliable management services include production monitoring, equipment optimization, and part replacement that helps save you money.

Bitcoin mining farm management firm Wattum Management has confirmed their purchase of 2,400 AvalonMiner 1166 Pro rigs from Canaan ($CAN). Canaan, a Chinese manufacturer and ASIC mining pioneer, will collect $13 million in revenue from the sale.

Demonstrating both a high hashrate and efficiency, the AvalonMiner 1166 Pro units will be distributed to customers based in the United States. With over 500 units already in stock and ready to ship, Wattum will be receiving shipments containing the remaining 1,900 between June and August of 2021.

Details regarding the purchase:

  • Model: AvalonMiner 1166 Pro
  • Hashing Rate: 81TH/s
  • Quantity: 2,400
  • Power Consumption: 3400Watts
  • Power Efficiency: 42J/TH
  • Total Cost: $13,000,000+

AvalonMiner 1166 Pro Features:

  • Safety and Quality
  • Built-In AI Chip
  • Simple Deployment
  • Easy Maintenance
  • Unique Reinforcement Design

A Mining Equipment Milestone

This sale bolsters Wattum’s position as a leader in the cryptocurrency mining market, as inventory availability from reputable resellers is crucial in a time where mining equipment is sold out well into next year.

Wattum has established its reputation for both competitively priced equipment, dependable management and colocation services, the value of which has steadily increased amidst the soaring coin prices. With many large corporations buying out available miners and looking towards hosting facilities for support, Wattum continues to boast their own fully managed hosting facility in the United States.