Infinity Hash lowers electricity prices: This is how customers benefit

As part of the Bitcoin Halving tomorrow, the team behind Infinity Hash has decided to reduce the electricity price for the entire mining project to 4.9 dollar cents per kWh (kilowatt hour). Previously, the price of electricity was 5.7 dollar cents per kWh and the difference between the purchase price and the price sold to the project was intended as a source of income for the team.

According to your own information The elimination of the profit margin is part of the preparations for the halving and corresponds to a reduction of around 14 percent. Infinity Hash expects a comparatively slightly higher profit for the community due to the price reduction.

How big a role does the price of electricity play in mining?

With regard to the upcoming Bitcoin halving, the question arises as to how big an influence the electricity price has on the profitability of Bitcoin mining and what will change as a result of the halving.

Due to the high energy consumption, current Bitcoin miners (ASICS) spend around half of their mining income on electricity costs.

Since Bitcoin block rewards for miners will be halved after the upcoming halving, it is expected that energy prices will play an even greater role: electricity costs remain high, but yields fall by up to 50 percent.

Gain competitive advantages in mining

This is an important reason for mining companies to look for new and increasingly cheaper energy sources in order to remain competitive. In the last two years, the term “stranded energy” has become a constant topic in mining. It refers to the search for energy sources that are not fully utilized by normal needs.

Examples of this include the use of power plants that are not operating at full capacity. For example, the use of night capacity when large factories have significantly lower electricity consumption due to normal working hours. Or the development of energy sources in remote areas where building a power plant would otherwise not be worthwhile.

Using waste heat from mining equipment to feed into district heating networks and to heat industrial halls with excess electricity capacity is another new way to gain a competitive advantage in Bitcoin mining.

Impact and previous energy costs at Infinity Hash

According to the company, weekly electricity costs have so far been approximately $9,200. Revenue for the community was approximately $23,900. Energy consumption therefore accounts for almost 39 percent of total sales.

Due to the higher percentage energy costs resulting from the halving, the new electricity price of 4.9 dollar cents per kWh from hydropower, reduced by around 14 percent, should be clearly noticeable and help to cushion the effects of the halving somewhat.

How will the company behind the project make money in the future?

Since the team behind Infinity Hash had originally planned to cover its costs through profits from the difference in electricity prices, the question now arises as to how the project can remain profitable in the long term for the company behind it.

To this end, additional services relating to the core product Bitcoin mining will be offered in the future and improved together with the community. As a first step, the swap function for easy exchange of different cryptocurrencies will be further expanded and a fee will be added.