In the current market conditions with low margins, cost management is crucial for success. If an ASIC miner malfunctions, it is important to evaluate whether repairing the machine is worthwhile. If repairs are economically viable and align with the strategic goals of the operation, repairing can extend the life and profitability of the miners. Conversely, if repairs are too costly, you can choose to consolidate hardware, repurpose parts, or use the hardware for training purposes. This article was written in collaboration with Jenn Hays, CEO of Orion & Taurus, delivering specialized education for ASIC miner repair. We will delve into the following topics.
6 Strategies How to Survive Low Mining Margins – PREMIUM Members Only
Evaluating if a Repair is Worth While
Miner Consolidation and Repurposing Parts
Selling for Parts
Use Hardware for Education
Disposing of miners
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6 Strategies How to Survive Low Mining Margins
With hashpice at these lower levels, margins have been squeezed. Miners operating at a loss or near break-even can take several actions to survive a period of low margins. Here are six strategies:
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Evaluating if a Repair is Worth While
In the current market conditions with low margins, cost management is crucial for success. If an ASIC miner malfunctions, it is important to evaluate whether repairing the machine is worthwhile. Given the challenging market conditions, recouping the costs of an expensive repair might prove difficult.
For example, a Bitmain Antminer S19j Pro 100 TH/s 3050 W machine with a hash price of $0.055/TH/Day and hash cost of $0.07 kWh generates a revenue of $5.50 per day (100 TH x $0.055). The hash cost comes down to $5.12 per day (((3050 W x 24 hr) / 1000) x $0.07). This leaves a profit of $0.37 per day ($5.50 – $5.12).
PSU prices range from $125 to $225. If a PSU needs to be replaced, it can take 332 to 608 days to recoup those costs in current market conditions, which is hard to justify.
Ultimately, the decision to repair depends on the specific circumstances of your mining operation, including current profitability, repair costs, available storage, and future market expectations. If repairs are economically viable and align with the strategic goals of the operation, repairing can extend the life and profitability of the miners. Conversely, if repairs are too costly, you can choose to consolidate hardware, repurpose parts, or use the hardware for training purposes.
Miner Consolidation and Repurposing Parts
If a repair is too costly to justify, consider consolidating miners. Salvaging broken ASICs for parts may enable a quick fix for another miner in your fleet. Saving on costs related to part replacements could make the repair effort worthwhile.
If swapping a PSU, refer to the Bitmain website to see which PSU your miner needs. In some cases, you can interchange different versions of the PSU.
If you exchange a control board, ensure that the control board is the correct one for the miner. If the control board came from another miner, you may have to reflash it if the control board is unlocked.
If swapping out hashboards, make sure they are in the same bin or very close to it. If not, they will have a harder time working together and might not function properly.
When recycling components of a hashboard, test these elements to make sure they work properly before using them on other hashboards.
Depending on how many miners are in your operation, investing in a Pick and Place machine to recycle ASICs could be beneficial. This handy tool works great on double-sided hashboards to efficiently suction off the ASICs.
According to a White House press release, tariffs on Chinese semiconductors will increase from 25% to 50% in 2025, effectively doubling the tax rate. Starting to recycle now can help minimize costs for purchasing ASIC parts when the bill is passed.
Selling for Parts
If you cannot consolidate or reuse parts, consider selling broken ASIC miners or their components on online marketplaces like eBay or specialized forums (such as ASIC resell Telegram groups). There is often demand for parts from other miners or hobbyists looking for specific components.
Use Hardware for Education
If you cannot reuse parts, a good alternative is to use broken miners to train operators and repair technicians. For example, non-repairable hashboards can be used for soldering training when hiring new technicians.
Alternatively, you can donate broken miners to schools or universities with engineering or electronics programs. These institutions can use the hardware for educational purposes, such as teaching repair techniques or understanding electronics. For instance, 44 West Mining has started supporting the education initiative by donating some of their old miners to the University of Wyoming and the Mining Club to help students learn miner repair.
Disposing of miners
If you choose to dispose of your miners, contact your local waste management services to inquire about proper disposal methods for electronic waste. Follow their guidelines to ensure safe and legal disposal.
Learn about how to strategically approach Bitcoin mining rig repair in our previous publication. We discuss the three tiers of severability, replacement vs repair, how to determine cost-effectiveness and what to do in the case of catastrophic events.
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