This week on the podcast we chat to Youwei Yang, Chief Economist at NewYork-listed BIT Mining NYSE:BTCM. BIT Mining is a leading North American technology-driven cryptocurrency mining company, with a long-term strategy to create value across the cryptocurrency industry. Its business covers cryptocurrency mining, mining pool, data center operation and miner manufacturing.
BIT Mining owns the world’s top blockchain browser BTC.com and the comprehensive mining pool business operated under BTC.com, providing multi-currency mining services including BTC, ETH and LTC. BIT Mining also owns a 7-nanometer cryptocurrency mining machine manufacturer, the recently acquired Bee Computing, which provides BIT Mining self sufficiency through vertical integration with its supply chain.
Bitcoin mining and indeed the wider cryptocurrency mining sector has its fans and its opponents. One of the key criticisms has been the amount of energy this activity consumes, and on the podcast we discuss this in some depth, including the interesting relationship between miners and the local community, which in some ways reminds me of the relationship between conventional miners and local inhabitants.
Cryptocurrency mining was starting to take off in China before the government there decided to crack down on it, again partly due to concerns over power consumption. Youwei talks about what BIT Mining has managed to achieve since it moved its centre of gravity to the US, including the aforementioned Bee Computing acquisition.
Mining coins is still considered by many investors as a good entry point into crypto markets. By owning shares in miners, they can get access to future booms in cryptocurrency prices. BIT Mining itself is more than just a miner though, and Youwei provides some interesting insights on its other operations, like its mining pool (which we consider a crucial strategic asset for the company) and a portfolio of dedicated data centres in Ohio.
Litecoin mining is big business
One of the interesting new developments at BIT Mining has been launch of their state-of-the-art Litecoin mining machine, the model LD3, which was specifically designed for mining on the DOGE and LTC blockchains.
The power efficiency of 0.73 W/MH and 4800 MH/s delivery make the LD3 machine more profitable than its predecessors in terms of efficient energy consumption. As a result, it is one of a few cutting-edge products available that deliver a highly cost-effective performance while offering the shortest payback period for LTC/DOGE mining.
The machines are designed for reliability, with the LD3s leaving more than a 10% performance margin for computing power chips rather than driving the machine to work under extreme conditions. This practice not only effectively prolongs the need to service the machine but also enables LD3s to work more consistently, resulting in reduced maintenance costs.
Furthermore, the design of the LD3 provides more security guarantees for LTC/Doge miners. The LD3 machine implements software-level security mechanisms with the latest common vulnerabilities and exposure patches. In addition, hardware-level protections for security are also implemented.
The unveiling of the LD3 mining equipment marks a significant advancement for BIT Mining as this next generation of LTC/DOGE miners will push the industry ahead with currently unmatched technical specs. The LD3’s release is also well-timed with the upcoming LTC halving event in August, allowing BIT Mining to make a strategic pivot to other growing blockchain technologies.
