Survival of the Fittest – 272

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Rate industry jargon for the computing Power that it can direct towards running The Bitcoin Network The Firm said this Week that it's got a horde of money more Than 800 million of cash and Bitcoin and Will seek to grow that to capitalize on Strategic opportunities including Industry consolidation ahead of the Having now from my perspective when We're talking about getting into crypto Mining and I covered this over on my Crypto mining ecourse at son of ach.com We're we're kind of taking the scraps From these larger miners as these larger Miners start to put Capital into new Machines and start to liquidate their Old machines is when we begin to see Like this ability for people that aren't Necessarily in the industry to start Breaking into the industry and this is Because what they are doing is replacing Extremely you know cheap machines now at This point with extremely expensive Machines and they're usually just trying To move a lot of it in bulk this is why We saw things like s9s 95 Terra hases Going for under $500 a pop and the thing Is is now the industry is quite shifted Whereas previously there wasn't a ton of Custom firmware in the last Bull Run for A lot of as6 they kind of started to Play around right we saw some of the Zlink boards come out we saw some custom Firmware low power mode really didn't

Get a good push until the bare market And then custom firmware didn't get a Good push as well and a lot of these Older miners you can get very very good Efficiency off of them if you're willing To put in the work and the thing is is People that are running large companies Aren't always willing to put in the work There so this means that you have this Kind of opportunity to capitalize on and It's something that I've been doing Personally uh on the as6 side buying up A lot of these used as6 getting them Cleaned up putting on firmware that Makes them extremely more efficient than They were when they're running with Those Farms I mean to give you an idea When I'm picking up these machines from These you know large liquidations from These larger firms they are still stuck On firmware that is old as hell they They didn't even during the bare Market Go hey should we flash a lot of these Which you could do very simply with Something like you know forem or Whatever you could go through and Flash All of them to a low power mode pretty Simply and you could have been way ahead So they're they're when they're looking At efficiency they're always looking at Efficiency overall and just buying the Machines taking them from bitm as they Are and deploying them to the network And that means that when they go in

Ahead and sell them their perception of The value is much lower and so that Gives you an opportunity here to hop in And that's what I've been doing Specifically with Coastal crypto shout Out to Coastal crypto and BT miners when BT miners has some and then there's a Lot of other outlets that you can look At there is firmware across the board For a majority of these machines as well Worst case you can pick up a separate Hash board for you know somewhere Between 50 to 150 bucks depending on Which board you're going with and you Can get these you know 30 plus Jewels Per Tera hash down to you know 20 to 25 Jewels per Tera has and start competing With the newer equipment that's coming On for a lot cheaper and this is really Kind of something to take a look at and I think the when we're talking about These guys looking at efficiency trying To be more efficient I think they're Making a lot of mistakes and they're not Not actually utilizing their money their Capital in the best forms possible in All cases right so let's go ahead and Move on though and see what they're Doing the the the another large minor HUD a just completed its all stock Merger with a privately held us Bitcoin Clean spark has been collecting cheap Assets since the start of the bare Market and said it has almost $170

Million shored up to take advantage of Opportunities to having made present and Riot platforms another institutional Grade Miner has just ordered 6656 new mining machines for $29.5 million to stay ahead of its Competition the scene is set for a dog Eat dog competition quote leading up to The having and in its aftermath miners Will need to place substantial emphasis On strategic planning the adage quote if You aren't growing you're dying holds True end quote said Amanda Fabiano and This one I definitely agree with right Now I've been talking about this for a While I mean I get it a lot of people You know when they saw me sell Cas but To purchase Bitcoin asex they think it Was a dumb idea they're always looking At the short term but you got to Understand I'm a minor I'm growing my Crypto mining farm and if I'm not Growing that farm and I'm sitting on Crypto I'm sitting on Capital and I'm Not generating more revenue or the Potential for more Revenue I'm dying and That is the way this industry works you Need to always be working towards Something to become more efficient Reduce your power cost if you can Increase the amount of power and cut a Deal with power company you need to Increase the amount of equipment you're Holding if you're not growing in

Cryptocurrency mining you are dying and That is the only way to survive the good News is of course on the GPU mining side Just as a tangent here that I've noticed Is that for the most part the 30 series Is still extremely competitive to the 40 Series now in these recent releases of These new algorithms or new Cryptocurrencies not really new Algorithms we are seeing you know the 40 Series outperformed the 30 series and Something like Carlson but it's Important to note that that's because There is no Asic resistance deployed on Those so from a GPU mining perspective I Don't think it's something that you need To freak out about if you sat on 3000 Series sold off all your 2000 series Last Bull Run I think you're in a very Good position here so you did hold Through you didn't sell off at super Cheap on your GPU prices you kept those In stock while like me and tried to like Maintain and get through it you know get Through with some really good Speculative Minds like Caspa you know And so on and get yourself in a position Where you're able to deploy more Capital During the bare Market you're going to Be in a very good spot running up into 2025 at least in my humble opinion not Financial advice just what I'm doing Right so in fact mining consultancy firm Block Bridge said that a dozen public

Mining companies have already committed Over $1.2 billion so far this year to Buy mining machines with about $750 Million signed over the past two Months so how do we get here and why are The miners racing the gear up for the Having the Bitcoin having also known as The happing is simple in simple terms Will make obtaining or mining new Bitcoin much harder the having is part Of the Bitcoin Network's code to reduce Inflationary pressure on the Cryptocurrency and will cut the rewards In half for successfully mining a Bitcoin block a useful analogy that Might resonate with the non- crypto Crowd think about extracting a finite Natural resource such as gold or oil From the ground the more that's obtained The less that's left making the Remaining resource more valuable yet More expensive to extract now swap out Whatever traditional commodity you had In mind and replace it with Bitcoin and Crypto mining that's the having a Classic is example of the supply and Demand cycle creating scarcity driven Value for an asset it's something Bitcoin Creator satachi Nakamoto Believed then in fact Bitcoin might Actually be even more scarce than gold Historically the event has increased Bitcoin prices exponentially creating a Generational wealth for investors but a

Pres but a presenting challenge for the Miners that actually create Bitcoin During the third having which occurred In 2020 bitcoin's price went from around 85 00 to nearly 18,000 within a few Months while the reward for successfully Mining a block was cut from 6.25 to 12 Point or I think it's from 12.5 to 6 Yeah 6.25 from 12.5 there you go yeah so We're at 6.25 now this time the reward Will sink to 3.125 bitcoin making mining Even more competitive in previous Cycles There weren't many large scale Miners And even fewer publicly traded ones During the lead up to the bull market of 2021 a swath of miners jumped into the Sector to reap nearly 90% profit margins At the peak as Bitcoin neared 70,000 Miners were making money hand over fist And many were spending and taking on Debt to grow faster investors including Traditional Financial firms lavishing Miners with cash to fuel grow at fuel Growth also incentivized break neck Spending and growth at any cost and this Is kind of the thing where I think People miss it I talk about this in my Crypto mining ecourse there was a point In the last bull run where I just cut Back on the amount of gpus and Everything that I was buying it didn't Make sense paying $3 to $4,000 for an RTX 3090 when it was very evident that We were going to start coming back down

Right now on the as6 side of things it Was even more ridiculous and s19 at the Time going for 8 to 12,000 didn't make much sense but now we Can get those same units for a tenth of The price right we're talking about like $500 a pop and if we look at the overall Kind of cyclical nature of Bitcoin and The mining space you will see the s9s Start to resurface as higher higher Prices so if you're just even looking at Flipping equipment it makes a lot of Sense it all came crashing down during The 2022 bare Market profit margins got Crushed and some big miners filed for Bankruptcy and access to Capital markets Was shut many miners still operating are Barely surviving waiting for the next Bull Run to save them the rally in Bigcoin prices in 2023 fueled but mostly By the optimism that us Regulators will Approve spot Bitcoin exchange traded Funds or ETFs for short from the likes Of Black Rock has helped miners somewhat But with the Bitcoin Network's hash rate At an all-time high the difficulty Mining a single block is also at a Record high high Energy prices which is Definitely something to look at and Intense regulatory scrutiny and still Bone dry Capital markets the mining Landscape remind remains tough I really Honestly over the past you know few Months I think since about August the

Mining landscape on the Bitcoin mining Side has not been that rough sure the Margins are difficult but it's it you You you're still in profit which means That if you expect everything to play Out the same way I in general where you Expect you know the having to increase The price of Bitcoin Etc exponentially Like it has in the past and you are Still being able to purchase miners at a Relatively cheap cost and then still be Able to make those profitable even right Now I think over the past few months That's been the case it's not really That sketchy of a plan you were just Talking about a slightly higher Roi time On those Mach maches but you're still Able to stack Bitcoin that you aren't Spending cover your power still have Bitcoin in reserve which is increasing In value over the next year to three Years and I think you're in a good spot I don't actually see it as that Difficult I I think everybody getting Scared is is a great opportunity for Everyone else though that's not scared Of this in General so we have a consolidation wave Which I think already happened but Miners who grew too fast are now cash Strapped in looking for a light at the End of the tunnel struggling miners need To cut cost Shore up their balance Sheets and require more Capital all

Potential Catalyst for mergers and Acquisitions in the industry I think a Lot of this had already been happening And and I think maybe a few more will Happen through April and I think we'll See a lot of these mergers happen However like on the small mining side if You're looking at just like building out Your own private Farm I mean this is Where the opportunity is because if you If you have someone like I don't know Like a just Marathon digital buy up a Smaller minor right and Marathon Digital's platform is like okay what We're going to do is we're going to buy All s21s the latest greatest we're going To so when we take over I think you'll Start to still see an influx of new new Or more used units hitting the market Which should drive the price down Hopefully still through April or at Least that's what I'm hoping for Personally cutting costs will likely be A major Drive of an upcoming wave in Consolidation in the mining industry Executive salaries insurance and other Expensive expenses benefit from Economies of scale in the post having Environment said Ethan Vera Chief Operating Officer at mining firm Luxor Technologies m&a can take many shapes And forms and can be complicated however One of the trends that might be Prominent according to Vera is private

Miners merging with public companies and I think this will happen quote off the Back of Bitcoin price momentum Shareholders of private and public Mining companies will look for Avenues To liquidate parts of this position Through publicly listed Vehicles as such Many private companies will merge with Public operating companies or shells to Gain access to this liquidity end quote He said they will likely follow Hut 8's Merger and use that as a quote case Study to combine entities that have both Strong balance sheets alongside high Growth opportunities end quote Vera Added Fabiano echoed this when asked About how this will play out saying Quote mid-tier and smallscale miners Should prioritize positioning themselves On the lower end of the cost curve one Likely path is merger and Acquisitions Given the capital constrain Market Meanwhile larger miners should Concentrate on growth narratives that Set them apart from their Rivals end Quote she said it seems the rule of the Jungle is about to be Unleashed on the Mining industry perhaps expressed by a Japanese idiom and I cannot pronounce That which Loosely translates to English As the Flesh of the weak is the food of The strong so there you go this is what They are looking at you know what the The industry perspective on the having

Is going to be there seems to be a lot Of Darkness still surrounding the Happening which is really interesting Because historically it hasn't proven Out that the having has really damaged a Ton of miners in fact once that happen Happens we start to see the price Increase the expectation was somewhere Between 45,000 and $50,000 per Bitcoin to make up for the Having and at least when I'm looking at My numbers and that would still keep Everything profitable so the fact that We're already at But then that'll get pushed up in price As people try to build larger and larger Firms and so on and so forth so it it Doesn't scare me I'd like to hear your Thoughts and opinions does are are you Fearful of this having uh from the Bitcoin mining perspective from the GPU Mining perspective what are your Thoughts on it I definitely want to find Out of course from the other side of Things if you're looking at from a GPU Mining perspective a lot of the other Coins that are GPU minable are not going To be hitting their having event and to Top that off a rising tide raises All Ships so the price of Bitcoin increasing Should increase the price of all GPU Minable coins or coins if you Prefer to call them that which means if You're on the GPU mining side you're

Probably going to benefit even more Heavily off of this then you are on the Asex side so it's pretty incredible the Only reason I really do the Bitcoin Mining asex side of things in general is To just hedge bets and have a more Stable income it's easier to predict It's easier to play with and you get Kind of that base level Revenue that for Your cash flow that allows you to be Riskier on the GPU mining side and so on So on the GPU mining side right a lot of Spec mining a lot of mining a ton of Stuff before it even hits markets Building up large bags of things that Have never been listed on an exchange Just to see if we can do that cover the Cost you know with the Bitcoin miners Play it riskier on the GPU mining side And sit back and see what happens and it Seems to be playing out quite nicely Especially over the past few months now You guys mind during the bare Market you Made it through well at least maybe a Half of you I know a lot of you over here didn't actually Do it but the ones that did I have a new Shirt for you guys and it says I mined With the Bears for the bear Market okay So if you mind with the Bears and you Want to rep that you did mine during the Bear Market go ahead and head on over to Shop.of ach.com and the listing will be Down below put it in live chat right now

I have a sweatshirt there's a sticker if You'd rather have a sticker t-shirt Premium shirt all that Co cool stuff um Really like the new shirt I ordered a Few for myself and I just had that Design finished this week eventually It'll be under on the YouTube channel But that takes a little bit of time so Just give it some time uh proceeds of Course go to supporting me in the Channel so there you go and I thought uh We put some work into it and I thought You guys might enjoy it Thanks for watching this clip from the Crypto mining show you can check out the Full episode here and don't forget to Subscribe down here as well you can also Check out my crypto mining ecourse at Sun of.com where you can get a free Month of supporter status with a Purchase Aton of. locals.com also don't Forget to check out my merch underneath The video or at shop.of ach.com I'll see You next Tuesday

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